金融界首页>行情中心>特力A>个股公告> 正文

-

-
(-%)
当前价  
当前价  
当前价  

个股公告正文

特 力B:2013年年度报告(英文版)

日期:2014-04-01附件下载

                         深圳市特力(集团)股份有限公司 2013 年度报告全文SHENZHEN TELLUS HOLDING CO., LTD
         Annual Report 2013
            March 2014
                                                  深圳市特力(集团)股份有限公司 2013 年度报告全文
          Section I. Important Notice, Contents and ParaphraseBoard of Directors, Supervisory Committee, all directors, supervisors and seniorexecutives of Shenzhen Tellus Holding Co., Ltd. (hereinafter referred to as theCompany) hereby confirm that there are no any fictitious statements, misleadingstatements, or important omissions carried in this report, and shall take allresponsibilities, individual and/or joint, for the reality, accuracy and completion ofthe whole contents.All directors are attending the Board Meeting for Report deliberation.The Company has no plan of cash dividends carried out, bonus issued andcapitalizing of common reserves either.Zhang Ruili, Principal of the Company, Luo Bojun, person in charger of accountingworks ,CFO Fu Bin and Ke Wensheng, person in charge of accounting organ(accounting principal) hereby confirm that the Financial Report of 2013 AnnualReport is authentic, accurate and complete.Concerning the future planning involved in the Report, they do not constitute asubstantial commitment for investors. Investors are advised to exercise caution ofinvestment risks.
                                                                                  深圳市特力(集团)股份有限公司 2013 年度报告全文
                                                            ContentsAnnual Report 2013 ...................................................................................... 1 错误!未定义书签。Section I Important Notice, Contents and Paraphrase ................................................................. 2Section II Company Profile ............................................................................................................... 6Section III Accounting data and summary of finnaical indexes .................................................. 9Section IV Report of the Board of Directors ................................................................................ 11Section V Important Events .......................................................................................................... 29Section VI Changes in shares and particular about shareholders............................................... 36Section VII Particulars about Directors, Supervisors,Senior Executives and Employees ........ 42Section VIII Corporate Governance .............................................................................................. 51Section IX Internal Control ............................................................................................................ 58Section X Financial Report ............................................................................................................. 61Section XI Documents available for reference .............................................................................. 73
                                                                   深圳市特力(集团)股份有限公司 2013 年度报告全文
                                                 Paraphrase
                      Items                     Refers to                             Contents
    CSRC                                            Refers to   China Securities Regulatory Commission
    SZ Exchange                                     Refers to   Shenzhen Stock Exchange
                                                            Shenzhen Branch of China Securities Depository & Clearing
    Shenzhen Branch of SD&C                         Refers to
                                                            Corporation LimitedCompany, the Company, our Company, Tellus
                                                Refers to   Shenzhen Tellus Holding Co., Ltd.GroupReporting period, this reporting period, this
                                                Refers to   Year of 2013year
    Auto Industry and Trade Co.,                    Refers to   Shenzhen Auto Industry and Trade Corporation
                                               深圳市特力(集团)股份有限公司 2013 年度报告全文
                           Major Risks WarningThe existing risk factor of the Company has been well-described in this Report,for statement of future risks and countermeasures in way of development of theCompany please pay attention to the section of Report of the Board of Directors.
                                                                                深圳市特力(集团)股份有限公司 2013 年度报告全文
                                        Section II Company profileI. Company information
    Short form of the stock        Tellus-A, Tellus-B                       Stock code                    000025, 200025
    Stock exchange for listing     Shenzhen Stock ExchangeName of the Company (in
                               深圳市特力(集团)股份有限公司Chinese)Short form of the Company
                               深特力(in Chinese)Foreign name of the
                               Shenzhen Tellus Holding Co., LtdCompany(if applicable)
    Legal representative           Zhang Ruili
    Registrations add.             3/F, Tellus Building, Shui Bei Er Road, Luohu District, Shenzhen
    Code for registrations add     518020
    Offices add.                   15/F, Zhonghe Building, Shennan Middle Road, Futian District, Shenzhen
    Codes for office add.          518031
    Company website                www.tellus.cn
    Email                          sztljtgf@public.szptt.net.cnII. Person/Way to contact
                                                       Secretary of the Board                     Rep. of security affairs
    Name                                         Guo Dongri                                 Sun Bolun
                                             15/F, Zhonghe Building, Shennan Middle     15/F, Zhonghe Building, Shennan MiddleContacts add.
                                             Road, Futian District, Shenzhen            Road, Futian District, Shenzhen
    Tel.                                         (0755)83989328                             (0755)83989339
    Fax.                                         (0755)83989386                             (0755)83989386
    Email                                        guodongri@yahoo.com.cn                     s9239243@163.comIII. Information disclosure and preparation place
    Newspaper appointed for information disclosure      Securities Times (Shenzhen) and Hong Kong Commercial Daily(H.K.)Website for annual report publish appointed by
                                                    http://www.cninfo.com.cnCSRC
    Preparation place for annual report                 Secretariat of the Board of Directors of Shenzhen Tellus Holding Co., Ltd.
                                                                                深圳市特力(集团)股份有限公司 2013 年度报告全文IV. Registration changes of the Company
                                                                      Registration NO. for
                                                                                               No. of taxation
                       Date for registration Place for registration     enterprise legal                          Organization code
                                                                                                registration
                                                                            license
                                             Shenzhen
                                             Administration      of
    Initial registration   1986-11-10                                     440301103017750        440300192192210     19219221-0
                                             Industry          and
                                             Commerce
                                             Shenzhen
    Registration at end                          Administration      of
                       2013-05-16                                     440301103017750        440300192192210     19219221-0
    of report period                             Industry          and
                                             Commerce
                                             Before 26 May 1993, business scope of the Company: engaged in metal working
                                             machinery, general equipment, general component, abrasive tools, abrasive materials,
                                             instrument, micro motor, home appliances, electronic component, electronic device,
                                             electronic computer and accessories, auto parts, rubber products and construction
                                             materials. Self-operated products manufacture by the Company and owned enterprises
                                             such as self-used production raw materials, metal working machinery and general
                                             equipment; import & export of general component. Business scope of the Company
                                             changed dated 26 May 1993 as: engaged in metal working machinery, general
                                             equipment, general component, abrasive tools, abrasive materials, instrument, micro
                                             motor, home appliances, electronic component, electronic device, electronic computer
                                             and accessories, auto parts, rubber products, construction materials, metal materials,
                                             chemical materials and products, plastic products, hardware tools, warehousing &
                                             transportation and general equipment; self-operated products manufacture by the
                                             Company and owned enterprises such as self-used production raw materials and metal
                                             working machinery; import & export of general component; import and exportChanges of main business since listing (if
                                             business complies with the approval certificate (Shen Mao Guan Shen Zheng Ziapplicable)
                                             No.098). Business scope of the Company changed dated 22 January 1997 as: develop
                                             enterprises (specific projects needs application); warehousing & transportation,
                                             processing on giving materials for machinery component and mechanic assembly.
                                             Domestic business and supply & marketing industry of materials (excluding
                                             monopolized commodity and commodity under special government control).
                                             Self-operated products manufacture by the Company and owned enterprises such as
                                             self-used production raw materials and metal working machinery; import & export of
                                             general component; import and export business complies with the approval certificate
                                             (Shen Mao Guan Shen Zheng Zi No.098). Business scope of the Company changed
                                             dated 3 December 2009 as: develop enterprises (specific projects needs application);
                                             develop and operate the real estate business on the land with usage rights obtained
                                             legally; domestic business and supply & marketing industry of materials (excluding
                                             monopolized commodity and commodity under special government control); rental
                                             and management for self-owned property. Self-operated products manufacture by the
                                             Company and owned enterprises such as self-used production raw materials and metal
                                                                             深圳市特力(集团)股份有限公司 2013 年度报告全文
                                            working machinery; import & export of general component; import and export
                                            business complies with the approval certificate (Shen Mao Guan Shen Zheng Zi
                                            No.098).
                                           1. On 31 March 1997, the 159,588,000 state shares held by Shenzhen Investment
                                           Management Co., Ltd., the only non-circulation shareholder, were transfer to SDG;
                                           total share capital of the Company was 220,281,600 shares while 159,588,000 statePrevious changes for controlling
                                           shares held by SDG, a 72.45% in total share capital. 2. On 4 January 2006, theshareholders (if applicable)
                                           13,717,440 shares, as the consideration of share merger reform, were transfer to
                                           account of A-shareholders from SDG. After share merger reform, SDG holds 66.22% of
                                           the total share capital of the Company.V. Other relevant informationCPA engaged by the Company
    Name of CPA                         Ruihua Certified Public Accountants (LLP)
                                    3-9/F, West Tower, China Oversea Property Plaza,7# Building, 8# Yard, Yongdingmen WestOffices add. for CPA
                                    Binhe Rd., Dongcheng District, Beijing
    Signing Accountants                 Yuan Longping, Zhou XuechunSponsor engaged by the Company for performing continuous supervision duties in reporting period
    □ Applicable   √ Not applicableFinancial consultant engaged by the Company for performing continuous supervision duties in reporting period
    □ Applicable   √ Not applicable
                                                                                      深圳市特力(集团)股份有限公司 2013 年度报告全文
        Section III. Accounting data and summary of financial indexesI. Main accounting data and financial indexesIt has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting errorcorrection
    □Yes   √ No
                                                                                              Changes over last year
                                                    2013                     2012                                                2011
                                                                                                        (%)
    Operating income (RMB)                            486,729,308.18            419,642,661.31                    15.99%           403,282,098.80
    Net      profit      attributable      to
    shareholders        of    the       listed           6,900,719.04             7,146,259.35                    -3.44%              2,157,675.12company(RMB)
    Net      profit      attributable      toshareholders of the listed company
                                                   -15,514,016.52           -15,060,776.70                    -3.01%             -6,198,115.02after deducting non-recurring gainsand losses(RMB)
    Net     cash      flow   arising    from
                                                    -2,629,634.80            -7,756,382.47                     66.1%           -14,738,664.02operating activities(RMB)Basic earnings per share
                                                           0.0313                    0.0324                     -3.4%                    0.0098(RMB/Share)Diluted earnings per share
                                                           0.0313                    0.0324                     -3.4%                    0.0098(RMB/Share)
    Weighted average ROE (%)                                    3.67%                    3.95%                    -0.28%                     1.22%
                                                                                               Changes over end of
                                                End of 2013              End of 2012                                         End of 2011
                                                                                                   last year (%)
    Total assets (RMB)                                700,998,151.85            644,911,292.00                         8.7%        570,693,268.15Net assets attributable to
    shareholder of listed company                     191,351,957.28            184,675,401.61                     3.62%           177,365,899.51(RMB)II. Difference of the accounting data under accounting rules in and out of China1. Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
                                                                                                                                        In RMB
                                        Net profit attributable to shareholders of listed     Net assets attributable to shareholders of listed
                                                                                  深圳市特力(集团)股份有限公司 2013 年度报告全文
                                                       company                                             company
                                                                                                                       Amount at
                                   Amount in this period       Amount in last period    Amount at period-end
                                                                                                                      period-begin
    Chinese GAAP                                 6,900,719.04                7,146,259.35          191,351,957.28             184,675,401.61Items and amount adjusted by IAS2. Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
                                                                                                                                   In RMB
                                    Net profit attributable to shareholders of listed   Net assets attributable to shareholders of listed
                                                       company                                             company
                                                                                                                       Amount at
                                   Amount in this period       Amount in last period    Amount at period-end
                                                                                                                      period-begin
    Chinese GAAP                                 6,900,719.04                7,146,259.35          191,351,957.28             184,675,401.61Items and amount adjusted by foreign accounting rules3. Reasons for the differences of accounting data under accounting rules in and out of ChinaIII. Items and amounts of extraordinary profit (gains)/loss
                                                                                                                                   In RMB
                    Item                                2013                  2012                 2011                    Note
                                                                                                                 Including the
                                                                                                                 investment real estate
                                                                                                                 of Dongfeng Building,
    Gains/losses from the disposal of                                                                                that sold by subsidiary
    non-current asset (including the write-off            32,501,637.93          15,152,740.17        -2,474,496.72 of the Company --
    that accrued for impairment of assets)                                                                           Auto Industry and
                                                                                                                 Trade Co., disposal
                                                                                                                 earnings was RMB
                                                                                                                 32,339,077.70
    Gains/losses of debt restructure                                             14,377,457.14
                                                                                                                 A Civil Judgment
                                                                                                                 (2012)
                                                                                                                 Shen-Fu-Fa-Min-Er-C
    Gains/losses from contingency without                                                                            hu Zi No.4328 issued
                                                       -2,130,200.00
    routine business concerned                                                                                       from Shenzhen
                                                                                                                 Municipal Peoples
                                                                                                                 Court of Futian
                                                                                                                 District was received
                                                                                深圳市特力(集团)股份有限公司 2013 年度报告全文
                                                                                                                 by the Company in
                                                                                                                 Period, that is judged
                                                                                                                 Auto Industry and
                                                                                                                 Trade Co., bear joint
                                                                                                                 and several liability
                                                                                                                 for the debts of
                                                                                                                 defendant-
                                                                                                                 Guangming Watch
                                                                                                                 Industry Company, in
                                                                                                                 the Civil Judgment
                                                                                                                 (1996)
                                                                                                                 Shen-Zhong-Fa-Jing-
                                                                                                                 Yi-Zhong-Zi No.563.
                                                                                                                 The Company chooses
                                                                                                                 to appeal the decision,
                                                                                                                 on 12 December 2013,
                                                                                                                 Civil Judgment (2013)
                                                                                                                 Shen-Zhong-Fa-Shang
                                                                                                                 -Zhong-Zi No.1677
                                                                                                                 issued from Shenzhen
                                                                                                                 Intermediate Peoples
                                                                                                                 Court, the final
                                                                                                                 decision is upheld. As
                                                                                                                 for the case, RMB
                                                                                                                 2.1302 million
                                                                                                                 payable joint and
                                                                                                                 several liabilities
                                                                                                                 account was accrued
                                                                                                                 by the Company.Other non-operating income and expenditure
                                                        -391,032.13            65,402.35        13,464,148.60except for the aforementioned items
    Less: Impact on income tax                            7,495,101.45          7,398,899.92         2,637,516.45Impact on minority shareholders equity
                                                          70,568.79           -10,336.31             -3,654.71(post-tax)
    Total                                                22,414,735.56         22,207,036.05         8,355,790.14               --Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according tothe lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering TheirSecurities to the Public --- Extraordinary Profit/loss, explain reasons□ Applicable √ Not applicable
                                                                    深圳市特力(集团)股份有限公司 2013 年度报告全文
                        Section IV. Report of the Board of DirectorsI. IntroductionYear of 2013 is the year of the Company to overcome difficulties, aggressively and seek better development. Overthe past year, although the world economy turns a recovery trend, domestic economic growth and demands slowdown, inflationary pressure, the enterprise faces challenges in aspect of soaring cost, difficulties in re-financingand down in market demands. In the face of difficulties and pressures, Tellus continues to follow the guidingideology of “driven by reform and innovation, adjust the transformation and takes sustainable development as thegoal”, carried out works by closely around the main line of “completed operation targets, focusse on key projectsand promote transformation of enterprise management”, general development of the Company are in a soundstatus, key projects and works were pushed forward and the operation plans for the whole year was completed.In reporting period, the Company achieved operation income of RMB 486.73 million with a y-o-y growth of15.99 percent; profit realized RMB 14.18 million in total with 53.46 percent up y-o-y; net profit attributable toowners of parent company amounting as RMB 6.9 million, 3.5 percent down y-o-y; declined of the profit mainlybecause the income tax expenses increased over that of last year.II. Main business analysis1. IntroductionMain business of the Company was auto sales, auto inspection and maintenance and accessory sales, propertyrental and services etc.; main business and its structure as well as main business ability show no major changescompare with last period.
                                                                                                            In RMB/CNY
              Item                 2013                 2012             Y-o-y changes
                                                                                                          Note
                                                                             (%)
                                  486,729,308.18       419,642,661.31           15.99%Operation income
                                  387,558,722.36       336,419,631.43           15.20%Operation cost
                                   82,276,798.60        76,215,966.94              7.95%Period expense
                                   -2,629,634.80         -7,756,382.47          66.10% Sales revenue from Huari ToyotaNet cash flow from operation
                                                                                           Company-subsidiary of the Companyactivities
                                                                                           incrased
    Subtotal of cash out-flow from     41,251,674.42        64,322,848.76          -35.87% Cash paid for capital incrase for joint
    investment activities                                                                      ventures down y-o-y
                                                                             深圳市特力(集团)股份有限公司 2013 年度报告全文
                                        -3,171,696.95          -32,688,758.47           90.30% Cash        received   from   disposal   of
    Net cash flow from investment                                                                     investment real estate incrased in the
    actitive                                                                                          Period and cash paid for investment
                                                                                                  decrase over last year
    Subtotal of cash in-flow from         162,083,399.98           378,400,000.00           -57.17%
                                                                                                  Loans obtained in the Period decreasedfinancing activity
    Subtotal of cash out-flow from        148,257,159.60           338,734,072.98           -56.23% The loans which is due for repayment
    financing activity                                                                                in the Period decreased
                                       13,826,240.38            39,665,927.02           -65.14% Loans from parent company and cashNet cash flow from financing
                                                                                                  borrow from the Bank decreased in theactitive
                                                                                                  PeriodIn reporting period, major changes on profit structure and main influencing factors
                                                                                                                      In RMB/CNY
                                                                                           Ratio
           Item               This Year           Last Year        Amount changed                                     Note
                                                                                          changed
                                                                                                    Borrowings RMB 73
                                                                                                    million for SDG increased
    Financial expense            16,783,591.71       10,081,337.64          6,702,254.07        66.48 % in December of last yera,
                                                                                                    and loans in the Period
                                                                                                    growth
                                                                                                    Less accrual for bad debt
    Assets       impairment                                                                             provision and inventory
                               1,565,095.04      11,158,962.81         -9,593,867.77       -85.97 %
    loss                                                                                                falling price reserves in the
                                                                                                    Period by the Group
                                                                                                    More earnings obtained in
                                                                                                    the Period from affiliated
    Investment earnings            8,550,869.02        4,907,776.00         3,643,093.02        74.23 % enterprise--      Shenzhen
                                                                                                    Zung Fu Tellus Auto
                                                                                                    Service Co., Ltd.
                                                                                                    More earnings gainedNon-operation
                                 331,465.34      14,553,855.33       -14,222,389.99        -97.72 % from debt reorganizationrevenue
                                                                                                    last year
    Non-operation                                                                                           Accrual for lawsuit losses
                               2,680,027.26          150,447.76         2,529,579.50 1,681.37%
    expenditure                                                                                             in the Year
                                                                                                        Payable      income     tax
    Income tax                   11,161,230.57         8,264,624.20         2,896,606.37         35.05%
                                                                                                        increased in the PeriodProgress of the development strategy and operation planning that disclosed previouslyIn the working reprot of the Board for year of 2012, the Company presented that in 2013, the Company willcontinues to insist on guiding ideology of “innovation-driven, adjustment & transition oriented and aim at
                                                                                   深圳市特力(集团)股份有限公司 2013 年度报告全文sustainable development”, closely surrounded by operation target of 2013, upholding the integration of stable anddevelopment, seize opportunity, proactively, stimulated to promote development projects with all-out effort; brandbuilding, market extension and strive to searching new management model for Tellus; emphasize on internalcontrol and management, ensuring security, tap the potential and increase benefits with purpose of improvingoperational ability and profitability for the enterprise.In the reporting period, in line with the established strategy oritation, the Company achieved a stable operationand aggressive status. In aspect of key project construction, Shuibei Jwerly Industry Park is in a good progress,and entered into the construciton phase on schedule currently. As for the main business, proactively promotedguiding ideology of “brand building and market extension”, on one hand, close to the jewelry industry, vigorouslyintroduce well-known jewelry brand, play a radiation effect for achieveing the maximum of property value; on theother hand, actively absorb clients in order to reduce the unoccupied tenement, meanwhile, increased the rent perunit and management fee in a reason way through improve after-rent service, increase income and reduceexpenditure so as to enhance management ability and profitability for the enterprise.Reasons for difference of actual operation performance has 20% lower or higher than profit forecast of the Year disclosed□ Applicable √ Not applicable2. RevenueNote:In reporting period, operation income of the Company was RMB 486,729,308.18 while income from mainbusiness amounting as RMB439,446,436.02, a y-o-y growth of 11.57 percentMain business income according to industry as:
                                                                                                                          In RMB/CNY
                                                                                                       Main business profit margin
                   Industry                   Main business income         Main business cost
                                                                                                                   (%)
    Auto sales                                          296,678,808.63                 292,287,079.25                           1.48%
    Auto inspection and maintenance                      52,779,887.42                   40,804,748.49                         22.69%
    and accessories sales
    Property rental and service                          89,987,739.97                   45,485,024.13                         49.45%
                    Total                             439,446,436.02                 378,375,893.21                          13.85%Business activities or main products with over 10% in total main business income or main business profit:
                                                                                                   In RMB/CNY
                                                                         Main       Increase/decreas Increase/decre Increase/decrease
                              Main business                             business        e of main       ase of main     of main business
        Products                                 Main business cost
                                 income                                  profit     business income business cost profit margin over
                                                                       margin (%)     over last year   over last year    last year (%)
                                                                                         深圳市特力(集团)股份有限公司 2013 年度报告全文
                                                                                                   (%)              (%)
    Auto sales                       296,678,808.63             292,287,079.25       1.48%                 18.01%         18.02%               -0.01%
    Auto inspection and               52,779,887.42              40,804,748.49       22.69%                10.04%         15.58%               -3.71%
    maintenance            andaccessories sales
    Property rental and               89,987,739.97              45,485,024.13       49.45%                -4.77%         -4.18%               -0.31%serviceIncome from physical sales larger than income from labors√ Yes □ No
                                                                                                                          Increase/decrease y-o-y
          Industries                       Item                         2013                           2012
                                                                                                                                   (%)
                               Sales volume                                       2,090                          1,630                     28.22%Auto sales
                               Inventory                                               356                         340                         4.71%Reasons for y-o-y relevant data with over 30% changes□Applicable √Not applicableMaterial orders in hands□ Applicable √ Not applicableMaterial changes or adjustment for products or services of the Company in reporting period□ Applicable √ Not applicableMajor sales of the Company
    Total top five clients in sales (RMB)                                                                                               57,976,127.38Proportion in total annual sales volume for top five clients
                                                                                                                                           11.59%(%)Information of top five clients of the Company□Applicable √Not applicable3.CostIndustry classification
                                                                                                                                               In RMB
                                                              2013                                       2012
        Industry                                                                                                                  Y-o-y changes
                               Item                               Ratio in operation                         Ratio in operation
    classification                                  Amount                                     Amount                                     (%)
                                                                      cost (%)                                   cost (%)
    Auto sales             Raw materials          292,287,079.25                 75.42%      247,666,791.59                73.62%              18.02%Auto inspectionand maintenance
                       Other                      40,804,748.49              10.53%          35,303,773.07             10.49%              15.58%and accessoriessales
                                                                                 深圳市特力(集团)股份有限公司 2013 年度报告全文Property rental
                        Raw materials       45,485,024.13             11.74%      47,471,372.04             14.11%             -4.18%and serviceProduct classification
                                                                                                                                 In RMB
                                                       2013                                  2012
       Product                                                                                                         Y-o-y changes
                              Item                          Ratio in operation                    Ratio in operation
    classification                             Amount                                Amount                                  (%)
                                                                cost (%)                              cost (%)NoteOperation cost for year of 2013 was RMB 387,558,722.36, a 15.20% growth y-o-y.Main business cost was RMB 378,576,851.87, a 14.57% up y-o-y.Main suppliers of the Company
    Total top five clients in suppliers (RMB)                                                                              310,789,242.31Proportion in total annual suppliers volume for top five
                                                                                                                                  92%suppliers (%)Information of top five suppliers of the Company
    □Applicable     √Not applicable4. Expenses
                                                                                             Ratio
        Item                 This Year            Last Year           Amount changed                                   Note
                                                                                            changed
    Sales expenses               21,265,233.88         20,698,948.07             566,285.81           2.74%Administrative
                             44,227,973.01         45,435,681.23           -1,207,708.22          -2.66%expenses
                                                                                                      RMB 73 million loans
    Financial                                                                                             increased in December of
                             16,783,591.71         10,081,337.64           6,702,254.07       66.48 %
    expenses                                                                                              last year and the loans in
                                                                                                      the Period increased5. R&D expensesNil6. Cash flow
                                                                                                                                 In RMB
                 Item                           2013                              2012                       Y-o-y changes (%)
                                                                           深圳市特力(集团)股份有限公司 2013 年度报告全文Subtotal of cash in-flow from
                                                  546,280,708.00               498,995,175.37                                   9.48%operation activitySubtotal of cash out-flow from
                                                  548,910,342.80               506,751,557.84                                   8.32%operation activityNet cash flow from operation
                                                   -2,629,634.80                -7,756,382.47                                   66.1%activitySubtotal of cash in-flow from
                                                   38,079,977.47                31,634,090.29                              20.38%investment activitySubtotal of cash out-flow from
                                                   41,251,674.42                64,322,848.76                              -35.87%investment activityNet cash flow from investment
                                                   -3,171,696.95               -32,688,758.47                                   90.3%activitySubtotal of cash in-flow from
                                                  162,083,399.98               378,400,000.00                              -57.17%financing activitySubtotal of cash out-flow from
                                                  148,257,159.60               338,734,072.98                              -56.23%financing activityNet cash flow from financing
                                                   13,826,240.38                39,665,927.02                              -65.14%activityNet increased amount of cash
                                                    8,020,916.71                     -781,042.07and cash equivalentReasons for y-o-y relevant data with over 30% changes√Applicable □Not applicable
                                                                                       Ratio change
           Item                  This Year         Last Year        Amount changes                                 Note
                                                                                            s
                                                                                                      Sales   revenue     from    Huari
    Net   cash    flow    from
                                  -2,629,634.80     -7,756,382.47       5,126,747.67        66.10% Toyota Company-subsidiary ofoperation actitive
                                                                                                      the Company incrased
    Subtotal of cash out-flow                                                                             Cash paid for capital incrase
                                  41,251,674.42     64,322,848.76    -23,071,174.34        -35.87%
    from investment activity                                                                              for joint ventures down y-o-y
                                                                                                      Cash received from disposal of
                                                                                                      investment real estate incrased
    Net   cash    flow    from
                                  -3,171,696.95    -32,688,758.47     29,517,061.52         90.30% in the Period and cash paid forinvestment actitive
                                                                                                      investment decrase over last
                                                                                                      year
    Subtotal of cash in-flow                                                                              Loans obtained in the Period
                                 162,083,399.98    378,400,000.00   -216,316,600.02        -57.17%
    from financing activity                                                                               decreased
                                                                                                      The loans which is due forSubtotal of cash out-flow
                                 148,257,159.60    338,734,072.98   -190,476,913.38        -56.23% repayment       in     the     Periodfrom financing activity
                                                                                                      decreased
    Net   cash    flow    from        13,826,240.38     39,665,927.02    -25,839,686.64        -65.14% Loans from parent company
                                                                                深圳市特力(集团)股份有限公司 2013 年度报告全文
    financing actitive                                                                                        and cash borrow from the Bank
                                                                                                          decreased in the PeriodReasons of major difference between the cash flow of operation activity in report period and net profit of the Company
    □Applicable      √Not applicableIII. Composition of main business
                                                                                                                                In RMB
                                                                               Increase/decrease
                                                                                                   Increase/decrease Increase/decrease
                          Operating                       Gross profit ratio     of operating
                                         Operating cost                                            of operating cost   of gross profit
                           revenue                               (%)            revenue y-o-y
                                                                                                      y-o-y (%)        ratio y-o-y (%)
                                                                                     (%)According to industries
    Auto sales              296,678,808.63   292,287,079.25                1.48%            18.01%              18.02%              -0.01%Auto inspectionand maintenance
                         52,779,887.42    40,804,748.49             22.69%              10.04%              15.58%              -3.71%and accessoriessalesProperty rental
                         89,987,739.97    45,485,024.13             49.45%               -4.77%              -4.18%             -0.31%and serviceAccording to products
    Auto sales              296,678,808.63   292,287,079.25                1.48%            18.01%              18.02%              -0.01%Auto inspectionand maintenance
                         52,779,887.42    40,804,748.49             22.69%              10.04%              15.58%              -3.71%and accessoriessalesProperty rental
                         89,987,739.97    45,485,024.13             49.45%               -4.77%              -4.18%             -0.31%and serviceAccording to region
    Shenzhen                439,446,436.02   378,375,893.21             13.85%              11.57%              14.57%              -2.25%Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based onlatest one years scope of period-end
    □ Applicable     √ Not applicableIV. Assets and liability analysis1. Major changes of assets
                                                                                                                                In RMB
                                                                                       深圳市特力(集团)股份有限公司 2013 年度报告全文
                            End of 2013                         End of 2012                 Ratio
                                       Ratio in total                     Ratio in total changes           Notes of major changes
                       Amount                              Amount
                                         assets (%)                        assets (%)      (%)
    Monetary fund       69,898,791.56             9.97% 55,145,531.39                8.55%       1.42%Account
                     5,016,738.78             0.72%       5,779,383.21            0.9%      -0.18%receivable
    Inventory           62,826,365.70             8.96% 47,813,852.20                7.41%       1.55%Investment real
                    88,422,673.91            12.61% 96,666,571.61              14.99%       -2.38%estateLong-term equity 201,873,586.7
                                              28.8% 186,572,923.39             28.93%       -0.13%
    investment                         5
                    149,968,663.8
    Fix assets                                   21.39% 156,061,636.80               24.2%      -2.81%
                                   0Construction in
                    41,642,020.40             5.94% 12,977,929.03                2.01%       3.93%progress2. Major changes of liability
                                                                                                                                    In RMB
                                  2013                              2012                    Ratio
                                       Ratio in total                     Ratio in total changes           Notes of major changes
                       Amount                              Amount
                                         assets (%)                        assets (%)      (%)
                    110,969,952.9
    Short-term loans                             15.83% 93,881,155.00              14.56%        1.27%
                                   3
                    131,000,000.0
    Long-term loans                              18.69% 143,000,000.00             22.17%       -3.48%
                                   03. Assets and liability measure by fair value
                                                                                                                                    In RMB
                                                        Accumulative
                                   Gains/losses of                         Impairment         Amount
                    Amount at                           changes in fair                                    Sale amount in   Amount at
    Item                               changes in fair                        accrual in this   purchased in
                   period-begin                         value reckoned                                       this period    period-end
                                          value                               period         this period
                                                          into equityFinancial assets3. financial
    assets available    1,591,906.25         -298,884.50      1,114,567.55                                                      1,480,168.80for sale
                                                                              深圳市特力(集团)股份有限公司 2013 年度报告全文Subtotal of
                   1,591,906.25     -298,884.50      1,114,567.55                                               1,480,168.80financial assets
    Total              1,591,906.25     -298,884.50      1,114,567.55                                               1,480,168.80Financial
                           0.00             0.00              0.00                                                      0.00liabilityWhether measurement attributes for main assets of the Company in report period have major changes or not
    □ Yes   √NoV. Core competitive-ness analysisCore competitive-ness of the Company has no changed in the Period. Main business of the Company mainlydivided into two parts, the auto sales & aftermarket service and property rental & serviceAuto sales & aftermarket service of the Company adopt business model of 4S store, comprehensive majormaintenance and fast repair beauty chain, authorize maintenance, special maintenance and auto inspections, andowes a completed industry chain of automotive aftermarket and maintenance sales team with rich experiences. Asthe slow development in auto sales market, the whole industry comes to a period of low-speed development andfierce competition. The Company will strive to create new marketing mode, enlarge sale channel for automobile;menwhile, focusing on after-sale service for automobile, improve service quality and standards, absorb moreclients, and to overcome adverse factors in automobile consumption market, achieve operation targe with greatefforts.In aspect of property rental & service, the Company owes a certain property management experience and hashigher property management qualification and perfected internal management mechanism, also owes a brandrecognition in regional; most of the property rental and management are self-owned property, which has a lowercost and a stable income. With the stable promotion of Tellus-Gem Golden Jewelry Industrial Park, the Companywill taking full advantage of the development advantage of core base for Shenzhen golden jewelry industry, seizeopportunity to close to jewelry industry, perfected environment, improve service standards to increase rent priceand property added value; made best efforts in market planning ,stablized the clients and maintain letting rate,increase the earings from property business on best-efforts basis.VI. Investment analysis1. Equity investment outside(1) Investment outside
                                                         Investment outside
    Investment for this period (RMB)              Investment for last period(RMB)                    Changes
                             9,900,000.00                                42,250,000.00                              -76.57%
                                                         Invested company
                                                                                              深圳市特力(集团)股份有限公司 2013 年度报告全文
                                                                                                         Proportion of equity in invested company
                     Name                                                Main business
                                                                                                                     for listed company (%)Shenzhen Xinglong Machinery Module
                                                       Property rental                                                                               30%Co., Ltd.(2) Securities investment
                                                        Amount
                                                           of         Proportio Amount Proportio
                                         Initial       stock-hol         n of       of           n of      Book
                                                                                                                      Gains and
                             Short   investmen          ding at       stock-hol stock-hol stock-hol       value at
    Variety of Code of                                                                                                    loss in the Accounti Source of
                          form of           t              the        ding at the ding at ding at the the end of
    securities securities                                                                                                 reporting ng subject        stock
                          securities cost(RM beginning beginning the end of end of the the period
                                                                                                                       (RMB)
                                           B)            of the         of the   the period     period    (RMB)
                                                         period       period (% (Share)          (%)
                                                        (Share)
    Total                                           0.00              0       --              0       --           0.00           0.00    --            --Date of notice disclosedapproved by the BoardDate of notice disclosedapproved by general meeting (ifapplicable)Explanation on equity of other listed company hold
    √ Applicable    □Not applicableUp to end of the Period, the Company holds 135,920 shares of China Merchants Bank Co., Ltd. (Short form ofStock: China Merchants, Stock Code: 600036), who listed in Shanghai Stock Exchange; accounting item as:financial assets avialable for sales; year-end fair value was: RMB 1,480,168.80; year-begin fair value:RMB1,591,906.25.2. Main subsidiaries and stock-jointly companiesParticular about main subsidiaries and stock-jointly companies
                                                                                                                                                   In RMB
                                                   Main                                                        Operating       Operating
    Company                                                              Register   Total assets Net Assets                                       Net profit
                   Type        Industries        products or                                                   revenue           profit
    name                                                              capital      (RMB)          (RMB)                                         (RMB)
                                                   service                                                      (RMB)           (RMB)Shenzhen
    Auto                                            Sales of
                                                                  RMB 58.96 309,348,777 222,821,487 58,194,190. 31,765,718. 20,773,027.
    Industry        Subsidiary    Business          auto and
                                                                  million                 .87            .53             10               11             67
    and Trade                                       accessoriesCorporation
                                                                             深圳市特力(集团)股份有限公司 2013 年度报告全文
    Shenzhen                              Auto
    SD Huari                              maintenanc
    Automobile                 Service    e and           US$ 5         80,834,012. 42,304,020. 54,942,538. -2,440,983. -2,404,342.
              Subsidiary
    Enterprise                 industry   production million                    18          13           01          50            04
    Co.                                   and sales of
    Limited                               accessoriesShenzhen
    Zhongtian                  Service    Property        RMB 7.25      75,736,700. 21,272,673.
              Subsidiary                                                                      952,170.37 522,500.70 391,875.53
    Industrial                 industry   rental          million               25          28Co., LtdShenzhenHuari
    Toyota                                Sales of        RMB 2         92,165,919. -12,584,027 309,838,507 -5,243,583. -5,157,349.
              Subsidiary   Business
    Automobile                            automobile million                    06          .99         .77          51            38Sales Co.LtdShenzhen
                                      ManufacturXinyongton
                                      e ofg Auto
                           Service    inspection      RMB 19.61 13,247,259. 1,500,669.2 3,551,763.2                    -1,397,831.
    Vehicle       Subsidiary                                                                                  706,661.12
                           industry   equipment       million               75           4            0                        75Inspection
                                      for motorEquipment
                                      vehicleCo., Ltd.ShenzhenTellus
                                      InspectionXinyongton
                           Service    and repair      RMB 32.90 82,460,728. 43,527,825. 14,053,405.
    g             Subsidiary                                                                                   62,021.48    34,681.44
                           industry       of motor    million               12          21           46Automobile
                                          vehicleDevelopment Co. Ltd
    Shenzhen                              Real estate
    SD Tellus                  Manufacturi developme RMB 31.15 29,333,318. 12,726,605.
              Subsidiary                                                                           0.00 -298,923.13 -298,923.13
    Real Estate                ng             nt and      million               27          87
    Co., Ltd                                  operationShenzhen
    SD Tellus                             Property
                           Service                    RMB           27,599,502. 11,295,533. 41,620,194.
    Property      Subsidiary              managemen                                                           747,593.75 452,360.20
                           industry                   7.05million           70          31           45
    Managemen                             tt Co., Ltd
    Shenzhen                              Trading
                           Service                    RMB 2         2,684,961.1 2,520,254.4
    Tellus Real Subsidiary                agency of                                               305,505.00 -64,844.47 -64,844.47
                           industry                   million                4           9
    Estate                                real estate
                                                                                     深圳市特力(集团)股份有限公司 2013 年度报告全文ExchangeCo. LtdShenzhen
                                           Sales of
    Zung Fu           Stock
                             Service       auto and       RMB 30          351,777,249 195,100,725 1,568,458,6 21,428,046. 17,050,350.Tellus Auto jointly
                             industry      maintenanc million                      .00             .00       54.00             00              00Service Co., company
                                           eLtd.
                                           ManufacturShenzhen
                  Stock                    e and
    Dongfeng                     Manufacturi                  RMB 100         480,360,466 129,527,210 262,804,613                        5,772,275.2
                  jointly                  maintenanc                                                                   963,950.70
    Automobile                   ng                           million                  .03             .13            .67                          2
                  company                  e ofCo., Ltd.
                                           automobileShenzhen
    Xinglong          Stock                    Process of     RMB
                             Manufacturi                                  73,047,458. 64,979,136.
    Machinery jointly                          mould and 60.6333                                                     0.00         0.00         0.00
                             ng                                                     58             82
    Module            company                  exportation millionCo., Ltd.Notes of main subsidiaries and stock-jointly companiesParticular about subsidiaries obtained or disposed in report period□ Applicable √ Not applicable3. Major projects invested by non-raised fund
                                                                                                                         In ten thousand Yuan
                                                                           Accumulated fund
       Project              Total investment      Invested in this year    actually till end of          Progress            Project benefit
                                                                               this periodTellus Shuibei
    Jewelry Building                        41,364                 2,876.85                  4,164.2                 10.07%(Phase I)
          Total                         41,364                 2,876.85                  4,164.2            --                       --Date for inquiry on appointed website for
                                                  2013-01-09temporary notice disclosed (if applicable)
                                                  Found more details in “Notice of Foreign Investment” (No.: 2013-004) released inIndex for inquiry on appointed website for
                                                  Securities Times, Hong Kong Commercial Daily and Juchao Websitetemporary notice disclosed (if applicable)
                                                  (http://www.cninfo.com.cn) dated 9 January 2013VII. Estimated performance for year of 2014 (From January to March)Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the
                                                                             深圳市特力(集团)股份有限公司 2013 年度报告全文warning of its material change compared with the corresponding period of the last year and explanation on reason
    □ Applicable   √ Not applicableVIII. Prospect for future development of the Company(I) Development trend of the industry for the Company1. Auto sales and automotive aftermarket businessIn the year of 2013,Chinas general economic growth slows, increasing inflationary pressures, operation cost forenterprise increased. Along with the relevnat preferential policies of automobile consumption cancelled by theState, sales of passenger cars nationalwide representing different degrees of declined year-on-year andlink-relative down, sales of automobile industry in China is likely to or will suffer “economic winter”; soaringinterest and oil prices and parking fees made the cost of car purchasing and utilization growth dramatically;particularly in Shenzhen, convenient travel from green travel, public city bus and metrol lower the willings topurchase a vechicle. Market of automobile sales in grave difficulties, profit dorp dramatically, competition becammore and more worse, industry of automobile sales presenting a situation of general losses. Competition ofautomotive aftermarket business truns more and more worse and fierce due to the soaring cost of HR and marketsaturation.2. Property rental and serviceDomestic economy growth tends to slow due to the over capacity and soft domestic demand. In 2013, suffer fromthe spirit of eight rules of strict austerity, six bans and opposition to the formalism, bureaucratism, hedonism andextravagance carried out from the central, operation revenue from hotel, dinning room and entertainment venuesshows a significnatly decreased, property business impacted correspondingly; and have the risks from the lesseewho fail to paid the rent, and terminated the tenancies in advance.(II) Operation planning of the Company1. Auto sales and automotive aftermarket businessActively learning charateristic of automobile consumption market, get over disvantages in automobileconsumption market to reduce deficit in sales; vigorously develop vehicle maintenance and repair business,explore value chain business of secon-hand vehicles, quality goods, financial and insurance, made more efforts insparepart, export channels for accessories in particular, develop with a steady pace in other business of carefulinspection and training.2. Property rental and serviceCarried outmarket research overall and carefully, formulated reasonable and market-oriented market price timelyfor property rental. increased rental and property added value through improve the enviornment and higher theservices quality by close to the jewelry industry; improve proprty business earnings on best-effortrs basis tostablized clients, maintained letting rate and good market planning.(III) Operation planningThe Company will continues to center with economic benefit, emphasis on safety and stability, core with savecosts and increase income, strengthen fundatin, prevention and control of risks, implemented the mechanismconstruction and created core team spirits and fully promoted the constriction of projects;  building brands,explore market and strive to developed new manegment and profit mode for the maximum benefit of the
                                                                   深圳市特力(集团)股份有限公司 2013 年度报告全文Company realized.(IV) Capital requirement in way of developmentIn 2014, in face of the more capital demand in project constuction, on the one hand, the Company adopt activetymeasures of borrowing funds from the Bank and received part of the property rent in advance to collected projectfunds; on the other hand, combine with tolerance capacity of the Company and short(mid and long)-term interstesof the Company, vigorously exploration and innovation, determined and implemented a low-cost financing plan assoon as possible, strive for an early completion in aspect of long-term stable development funds obtained.(V) Risks probably confronted1. Changes of the marketAs economic growth slow in China and increasing infactionary pressure, operation cost of the enterprise is soaringcontinuesly. Automobile consumption market in Shenzhen presents a negative growth with clear oversupply,deficit in sales in whole industry is still there. Automobile sales and service business of the Company suffer amajor impact.Meanwhile, service industry opeartion of the Company suffer a lot from the economic enviornment and diligent &thrifty spirit carried out from the Government; operation shows a unstable condition, and has a hidden danger inlessee who fails to paid the rent, rent income and management fee income is likely to declined in a certain degree.In face of all these risks, on one hand, the Company will create new marketing mode, enlarge channel ofautomobile sales, improve service quality, explore more clients and increased revenue from automobile businessin many way; on the other hand, based on the location advantage of the property, play a radiation effect, activelyabsorb clients, vigorously introduce stability well-known brand enterprise in Jewerly industry with strength inorder to reduce the unoccupied tenement. On the basis of explore new service projects and improve servicestandards, increased the rent per unit and management fee in a reason way, achieve the maximum of propertyvalue.2. Cost pressure continue to increase and capital demand growthAffected by soaring inflationary pressure and sequential growth of opertion costs, labor costs of property rentaland management as well as auto repair of the Company continues to increase. At the same time, key projects ofthe Company is step in the construction period, cash flow arising by the Company is hard to meet the needs toallyfor the Companys development, and shows a big demand in money. In order to solve the problem of soraingcosts, the Company will reduce the impact by strengthen in management, downing the cost, higher workefficiency and profit margin. As for the captial demand pressure, on one side, the Company plans to collectproject funds in vary measures proactively; on the other side, opening mind to explore innovation, determined andimplemented a low-cost financing plan as soon as possible, strive for an early completion in aspect of long-termstable development funds obtained and ensuring the key projects are promoted on schedule.IX. The board of directors, board of supervisors’s explain about the"non standardaudit report" in the report period.Nil
                                                                                深圳市特力(集团)股份有限公司 2013 年度报告全文X. Compared with the annual financial report, the changes of accounting policies, accountingestimates and accounting methods.NilXI The instructions of the occurrence of major accounting error correction for retrospectiverestatement during the reporting periodNilXII Compare with last year’s financial report; explain changes in consolidation statement’sscopeSubsidiary of Shenzhen Auto Industry and Trade Corporation (wholly-owned subsidary of the Company),Guangxi Tellus Auto Service Co., Ltd, with 60 percent equity held by Shenzhen Auto Industry and TradeCorporation, was dissolved and cancellated, which was approved by the general meeting held on 3 June 2013.Therefore, the company excluded in consolidation scope of the Company since 3 June 2013. The industrial &Commerce License and Taxation Registration have cancelled in the Period.
                     Name                           Net assets at disposal date          Net profit from year-begin to
                                                                                                 disposal date
    Guangxi Tellus Auto Service Co., Ltd                                    369,643.93                              -433,343.74XIII Profit and dividend distributionFormulation, execution or adjustment for profit distribution policy in reporting period, cash bonus policy in particular
    √ Applicable   □Not applicableIn reporting period, cash bonus policy of the Company has no changed and adjustment. In accordance withregulations of cash dividend regulated in Article of Association, the Company always, formulated specific plan ofcash dividend after deliberation from the Board and Shareholders General Meeting, totally asking for opinionsfrom independent directors, which guarantee interest of minorities, and disclose timely and accuracy on AnnualReport and relevant medial based on requirement of regulations and systems.In accordance with requirement of “Notification on Serious Implementation on Relevant Requirement of Noticeof Further Implementation of Cash Dividend For Listed Company”, with purpose of guarantee interest ofinvestors, the Company convened the 2nd extraordinary meeting of 7th session of the Board dated 30 July 2012, the“Proposal of Amendment on Article of Association” (revised correspondingly on cash dividend clause regulatedin original Article of Association) and “Proposal of Formulation of Shareholders Return Plan in the Next ThreeYears (Y2012-Y2014)” were deliberated and approved in the Meeting, more details found in “Resolution Noticeof 2nd extraordinary meeting of 7th session of the Board (No.: 2012-016)”. The “Proposal of Amendment onArticle of Association” and “Proposal of Formulation of Shareholders Return Plan in the Next Three Years(Y2012-Y2014)” have been deliberated and approved in First Extraordinary General Meeting of 2012. TheCompany will follow the revised Article of Association, regulations and relevant rules, continues to implementedrelevant works with cash dividend concerned, attach importance to shareholder return and create more return forshareholders.Net profit attributable to shareholder of parent company in consolidation statement for year of 2013 amounting asRMB 6,900,719.04; profit of 2013 plans to un-distribution and un-capitalizing, retained profit will cover deficit of
                                                                                  深圳市特力(集团)股份有限公司 2013 年度报告全文the previous year. The aforesaid profit distribution plan should deliberate and approve in Annual General Meetingof 2013.Independent opinions on un-distribution profit plan from independent directors are as: accepting the decision ofprofit distribution for year of 2013, profit of 2013 plans to un-distribution and un-capitalizing, retained profit ofthe Company will cover deficit of the previous year.
                                               Special explanation on cash bonus policyMeet regulation of Article of Association or requirement
                                                            Yfrom resolution of General Meeting: (Y/N)Bonus standards and proportion is well-defined and clear:
                                                            Y(Y/N)Relevant decision-making procedures and mechanism is
                                                            Ycompleted (Y/N)Independent director make a conscientious effort and
                                                            Yplay a due role (Y/N):Minority shareholders have opportunity to fully express
    their views and demands, and their legal interest are       Yunder good protection (Y/N):As for those cash bonus policy with adjustment or
    changed concerned, condition and procedures are             Yregulated and transparency (Y/N):Profit distribution plan and capitalizing of common reserves plan in latest three years (including the reporting period)Profit of 2011 and 2012 are not distributed and no capitalizing, the retained profit were cover the deficitpreviously.The profit of 2013 plans no distribution and no capitalizing, retained profits were covering the deficit previously.The profit distribution plan requires deliberation and approval from Annual General Meeting of 2013.Cash dividend in latest three years
                                                                                                                                    In RMB
                                                                          Net profit attributable to     Ratio in net profit attributable to
                                      Amount for cash bonus (tax       shareholders of listed company shareholders of listed company
       Year for bonus shares
                                              included)                in consolidation statement for       contained in consolidation
                                                                                 bonus year                       statement (%)
    2013                                                            0.00                      6,900,719.04                                  0%
    2012                                                            0.00                      7,146,259.35                                  0%
    2011                                                            0.00                      2,157,675.12                                  0%The Company gains profits in reporting period and the retained profit of parent company is positive but no plan of cash dividendproposed□ Applicable √ Not applicable
                                                                            深圳市特力(集团)股份有限公司 2013 年度报告全文XIV. Social responsibilityBase on fair principle, the Company always protects legal interest of creditors and suppliers, proactively care andsupport business of community public cultural undertakings. Actively promote the realization of enterprise value,at the same time, realized self-worth; create an enterprise atmosphere of busines care staff, staff love theenterprise and harmonious development through cooperation. Meanwhile, organized love donation activities in theGroup, carried out diversified cultural and sports activities in order to higher the tean spirit and employees senseof belonging; express sympathy and solicitude for the people of illness and in straitened circumstances. TheCompany always attaches great importance to safety production. In 2013, the Company targeted work on securityclearance and rectify timely to the workshop and high-rise buildings, the labor-intensive place of the Company;helding 560 man-time vary safety trainings, implemented fire-drill and trainings to improve safety awareness andself-help cpability; renewal those aged equipment and facilities to improved security prevention and controlability, install CCTV in two old residential area of MeiYuan and Taohua Yuan, where has many floatingpersonnel with weak public security. And achieved safety production without major accidents in whole year.The listed company and subsidiaries is in the range of heavy pollution industry that regulated by State environment protectiondepartments
    □Yes   □No   √ Not applicableThe listed company and subsidiaries owes other major social safety issues
    □Yes   □No   √ Not applicableAdministrative penalty occurred in reporting period
    □Yes   □No   √ Not applicableXV. In the report period, reception of research, communication and interview
                                                                                                    Contents discussed and
        Time                Place                Way                 Type           Reception
                                                                                                       material provided
                                                                                                  General condition of the
                                                                                                  Company, the industry of
                     Conference room                                            Journalist from
    2013-07-30                               Field research      Institution                          the Company involved and
                     of the Company                                             AAstocks
                                                                                                  development planning etc.
                                                                                                  no materials provided
                                                                            深圳市特力(集团)股份有限公司 2013 年度报告全文
                                              Section V. Important EventsI. Significant lawsuits and arbitrations of the Company
    □Applicable       √Not applicableThere are no major lawsuits and arbitrations in the PeriodII. Questioned from media
    □ Applicable   √ Not applicableNo media questioned for the Company in reporting periodIII. Assets transaction1. Introduction of assets sold1) Shenzhen Auto Industry and Trade Corporation, controlling subsidiary of the Company, transfer 12 real estateslocates at Room 801, 8/F, Dongfeng Building to nature person Chen Ping with price of RMB 15.59 million.Relevant information please found in the “Notice of Assets Sold” (No.: 2013-001) that released in SecuritiesTimes, Hong Kong Commercial Daily and Juchao Website (http://www.cninfo.com.cn) respectively dated 8January 2013.2) Shenzhen Auto Industry and Trade Corporation, controlling subsidiary of the Company, transfer 26 real estatesin total locates at Room 601-613 and Room 701-713 in Dongfeng Building to Shenzhen Hengsheng Logistics Co.,Ltd. with price of RMB 32,171,558. Relevant information please found in the “Notice of Planning to Sale Assets”(No.: 2013-011) and “Progress of Assets Sold” (No.: 2013-021) that released in Securities Times, Hong KongCommercial Daily and Juchao Website (http://www.cninfo.com.cn) respectively dated 13 March 2013 and 28May 2013.IV. Material related transactions1. Related transaction with daily operation concerned
                                                                            Proportio    Settlemen
                                                                Amount
                                            Pricing                            n to
                     Type of Content                  Price of of related                t method
          Related                         principles                        amount of                 Market    Disclosur Index of
    Related              related of related               related transactio
         relationsh                       of related                        transactio   of related
    party             transactio transactio            transactio n (10                                 price      e date   disclosure
             ip                           transactio                         n or the    transactio
                         n         n                      n    thousand
                                               n                            same type
                                                                 Yuan)                       n
                                                                               (%)
    Total                                               --          --      0       --           --         --         --         --2. Related transactions by assets acquisition and sold
    Related   Related    Related       Related   Related    Book        Market Transfer Related           Income     Date of Index of
                                                                                                深圳市特力(集团)股份有限公司 2013 年度报告全文
    transacti relations transacti transacti transacti value of Assessm                         fair    price (in transacti        gained disclosur disclosur
      on          hip        on           on          on       transfer ent value value (in             10          on         from             e          e
    parties                     type       content explanati assets (in          of           10      thousand settleme           assets
                                                    on on         10       transfer thousand         Yuan)       nt mode transfer
                                                     price     thousand assets (in Yuan)                                       (in 10
                                                    setting     Yuan)         10                                             thousand
                                                                           thousand                                           Yuan)
                                                                            Yuan)3. Main related transactions of mutual investment outside
                                         Mutual                                                               Total assets     Net assets of Net profit of
                                                                            Main            Registered
      Mutual                          investments        Name of                                             of companies       companies            companies
                        Related                                           business of       capital of
    investment                              pricing         companies                                            invested (in     invested (in         invested (in
                    relationship                                          companies         companies
      party                             principle        invested                                             10 thousand      10 thousand          10 thousand
                                                                           invested          invested
                                                                                                                 Yuan)            Yuan)                Yuan)4. Contact of related credit and debtWhether exist non-operating contact of related credit and debt or not
    √Yes      □No
                                                                                                             Balance of      Amount of the
                                                                                      Non-operation                                                 Balance at
                                                                                                         period-begin           period
                                    Related      Type of credit        Forming          al capital                                              period-end (in
        Related party                                                                                          (in 10        occurrence (in
                                  relationship      and debt            reason          occupying                                                   10 thousand
                                                                                                             thousand         10 thousand
                                                                                           (Y/N)                                                      Yuan)
                                                                                                               Yuan)            Yuan)
                                                 Debts payable
    SHENZHEN SDG                 Parent                               Long-term
                                                 to related                           No                           7,300                    0              7,300
    CO., LTD.                    company                              loans
                                                 party
                                                 Debts payable
    SHENZHEN SDG                 Parent                               Current
                                                 to related                           No                           4,793                 593               5,386
    CO., LTD.                    company                              account
                                                 party
                                                 Debts payable
    SHENZHEN SDG                 Parent                               Short-term
                                                 to related                           No                           1,908                 -13               1,895
    CO., LTD.                    company                              loans
                                                 partyImpact on operation result andfinancial status of the Company from N/Arelated credit and debt5. Other significant related transactionsNilInquiry of disclosure website for relevant interim reports of material related transaction
                        Notice name                                 Dated for disclosed                        Website for interim report disclosed
                                                                              深圳市特力(集团)股份有限公司 2013 年度报告全文V. Major contract and implantation1. Trusteeship, contract and leasing(1) TrusteeshipExplanation on trusteeshipNilItems generated over 10% gains/losses in total profit in reporting period for the Company
    □ Applicable   √ Not applicable(2) ContractExplanation on contractNilItems generated over 10% gains/losses in total profit in reporting period for the Company
    □ Applicable   √ Not applicable(3) LeasingExplanation on leasingNilItems generated over 10% gains/losses in total profit in reporting period for the Company
    □Applicable    √Not applicable2. Guarantee
                                                                                                                In ten thousand Yuan
                  Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)
                     Related                     Actual date of                                                          Guarante
                                                                                                            Complete
                   Announcem                      happening                                                                 e for
    Name of the                 Guarantee                            Actual         Guarantee      Guarantee implemen
                        ent                        (Date of                                                               related
    Company guaranteed               limit                          guarantee limit      type           term      tation
                    disclosure                      signing                                                                 party
                                                                                                              (Y/N)
                       date                       agreement)                                                               (Y/N)N/A
                                           Guarantee of the Company for the subsidiaries
                     Related                     Actual date of                                                          Guarante
                                                                                                            Complete
                   Announcem                      happening                                                                 e for
    Name of the                 Guarantee                            Actual         Guarantee      Guarantee implemen
                        ent                        (Date of                                                               related
    Company guaranteed               limit                          guarantee limit      type           term      tation
                    disclosure                      signing                                                                 party
                                                                                                              (Y/N)
                       date                       agreement)                                                               (Y/N)N/ATotal guarantee amount (total of the aforesaid items)Including:Explanation on guarantee with composite way
                                                                                                        深圳市特力(集团)股份有限公司 2013 年度报告全文(1) Guarantee provided against regulations
                                                                                                                                                        In ten thousand Yuan
                                                                                                   Balance of
                                               Ratio in                                                             Ratio in
                                                                                                   guarantee
                                                   latest                                                            latest
             Relationsh     Amount                                                                   against                                                       Predicted
                                               periods                                                              periods      Predicted          Predicted
    Guarantee      ip with      guarantee                          Guarantee Guarantee regulation                                                                        date
                                              net assets                                                           net assets methods to               amount
      name      listed         against                               type          term              ended                                                        relieve(mo
                                              which was                                                            which was         relieve           relieve
              company regulation                                                                     before                                                          nth)
                                               audited                                                              audited
                                                                                                     annual
                                                    (%)                                                               (%)
                                                                                                     report
    Total                                    0                0%          --              --                       0            0%            --              --           --3. Other material contracts
                                             Book           Appraisal
                                          value of          value for
                                          amount             assets
                                                                                           Base date
                                         involved involved                                                             Trading                                     Implemen
    Company                                                                    Appraisal of assets                                       Constitute
             Name of                           in              in                                                      price (in                        Related      tation
    entered                   Date of                                         agency (if evaluatio          Pricing                          related
             counterpa                    contract contract(i                                                               10                         relationsh ended as
    into a                   signing                                         applicable        n (if      principle                     transactio
                rt                           (in 10           n 10                                                     thousand                            ip       reporting
    contract                                                                      )        applicable                                    n        (Y/N)
                                         thousand thousand                                                              Yuan)                                        period
                                                                                               )
                                         Yuan) (if Yuan) (if
                                         applicable applicable
                                               )                )4. Other material transactionsNilVI. Implementation of commitment1. Commitments made by the Company or shareholders holding above 5% shares of the Company inreporting period or extending to reporting period.
                                                                                                                      Commitment Commitment
      Commitments        Accepter                                          Contents                                                                             Implementation
                                                                                                                              time               period
                                    (I) Commitments during the work of Share Merger
                                    Reform of the Company:
                                    1. Commitments on Lock-up period
    Commitments for                     (1) In accordance with the Measures for the
                                    Administration of the Share Merger Reform of Listed
    Share Merger             SDG        Companies, SDG would abide by the various laws, 2005-12-25                                             Long-term            Implementing
    Reform                              regulations and rules, and perform its statutory
                                    commitment duty.
                                    (2) Apart from the above-mentioned statutory
                                    commitment, SDG also made the following special
                                    commitment: with 36 months since the day the reform
                                                                     深圳市特力(集团)股份有限公司 2013 年度报告全文
                     plan starts to take effect, SDG would not list at
                     Shenzhen Stock Exchange and sell the shares of Tellus it
                     held (except for the shares used to promote the
                     administration level of Tellus).
                     (3) The administration level would abide by the laws,
                     regulations and rules, and perform its statutory
                     commitment duty.
                     (4) SDG made the commitment: “The Promiser hereby
                     promises that, if the Promiser failed to fulfill its
                     commitment or not fully fulfill its commitment, it would
                     compensate other shareholders for their losses suffered
                     thereafter”.
                     (5) SDG declared: “The Promiser would dutifully fulfill
                     its commitments and shoulder corresponding legal
                     responsibilities. The Promiser would transfer the shares
                     held by it only if the assignee agree and have the ability
                     to shoulder the commitment responsibility.”
                     2. Special commitment concerning the incentive
                     mechanism
                     In order to effectively boost the core management level
                     and business backbones for long, SDG would take out
                     its shares, not exceeding 10% in total number after the
                     Share Merger Reform, and apply them to the boost of
                     the administration level. The shares would be sold to the
                     Companys administrative level over 3 years, with the
                     selling price being the net asset value per share audited
                     during the period nearest to the implementation. Before
                     the implementation of the promoting plan by share
                     selling each year, the administration level must prepay
                     the Company a risk responsibility fund, i.e. 20% of the
                     planned selling price; Should the work of the
                     performance examination set by the Board failed to be
                     finished, the paid risk responsibility fund would not be
                     refunded and shall be owned by the Company. Detailed
                     rules concerning the limitations on the administration
                     level, such as the subscription conditions and risk
                     responsibility fund, and boost plans would be set by the
                     Board and submitted to relevant departments for
                     approval. The implementation of the shares for
                     promoting would be conducted strictly according to
                     relevant laws and regulations, and the circulation
                     conditions of these shares would be in conformity with
                     relevant regulations set by the Shenzhen Stock
                     Exchange.
                     3. Relevant expenses of this Share Merger Reform of
                     Tellus would be paid by SDG.Commitments inreport ofacquisition orequity changeCommitments inassets replacementCommitments makein Initial publicoffering orre-financingOther commitmentsfor minorityshareholders
                                                                              深圳市特力(集团)股份有限公司 2013 年度报告全文Commitment
    completed on time        Y(Y/N)Detail reasons forun-complement and
                         N/Afurther plan (ifapplicable)VII. Appointment and non-reappointment (dismissal) of CPAAccounting firm appointed
    Name of domestic accounting firm                      Ruihua Certified Public Accountants (LLP)Remuneration for domestic accounting firm (in 10
                                                      55thousand Yuan)Continuous life of auditing service for domestic
                                                      0accounting firm
    Name of domestic CPA                                  Yuan Longping, Zhou XuechunWhether re-appointed accounting firms in this period or not
    √Yes   □NoWhether re-appointed accounting firms during auditing period or not□Yes √NoWhether completed approval process while changing accounting firms or not√Yes □ NoExplanation on re-engagement and changes of accounting firmsRSM China Certified Public Accountants, former accounting firms engaged by the Company, was mergered withCrowe Horwath CPA (LLP) as Ruihua Certified Public Accountants (LLP) (“Ruihua”), employees and business offormer RSM China Certified Public Accountants were transferred to Ruihua totally, and offering service to theclient as body of Ruihua. In orfer to maintain consistency and stability of the auditing business and guaranteeaudti quality, being deliberated and approved in First extraordinary general meeting of 2014, the engagedfinancial audit institute for year of 2013 and internal control of the Company was changed to Ruihua from RSMChina Certified Public Accountants. Relevant information “Notice of Changing Audit Institute for Year of 2013”(No.: 2013-032) was released in Securities Times, Hong Kong Comemrcial Daily and JuchaoWebsite(http://www.cninfo.com.cn) dated 2 January 2014.Appointment of internal control auditing accounting firm, financial consultant or sponsor
    √ Applicable      □Not applicableIn reporting period, Ruihua Certified Public Accountants (LLP) was engaged by the Company as auditinstitute for internal control, remuneration amounting as RMB 240,000.
                                                                               深圳市特力(集团)股份有限公司 2013 年度报告全文VIII. Explanation from Supervisory Committee and Independent Directors (if applicable) for“Qualified Opinion” from the CPANot applicableIX. Penalty and rectification
                                                               Type of
                                                                               Conclusion (if                           Index of
      Name                Type             Reasons        investigation and                      Disclosure date
                                                                                applicable)                            disclosure
                                                               penaltyExplanation on rectification□Applicable √ Not applicableParticular about directors, supervisors, senior executives and shareholders with over 5% shares held suspected illegal dealings of thestock of the Company and earnings of illegal dealings taken back by the Company that disclosed□Applicable √ Not applicableX. Suspension and delisting after disclosure of annual reportNot applicableXI. Explanation on other significant eventsNilXII. Significant events of the subsidiariesNilXIII. Corporate bond offeringNil
                                                                             深圳市特力(集团)股份有限公司 2013 年度报告全文
            Section VI. Changes in Shares and Particulars about ShareholdersI. Changes in shares
                                                                                                                              In Share
                                  Before change              Increase/decrease in this time (+ , - )                 After change
                                                                          Capitalizat
                                                                 Bonus       ion of
                              Amount       Ratio (%) New issue                           Other         Subtotal   Amount Ratio (%)
                                                                 share       public
                                                                            reserve
                              14,587,05                                                                           14,587,05
    I. Restricted shares                          6.62%                                                                             6.62%
                                       6                                                                                 6
    2. State-owned corporation 14,587,05                                                                              14,587,05
                                              6.62%                                                                             6.62%
    shares                                 6                                                                                 6
                              205,694,5                                                                           205,694,5
    II. Un-restricted shares                     93.38%                                                                            93.38%
                                      44                                                                                44
                              179,294,5                                                                           179,294,5
    1. RMB ordinary shares                       81.39%                                                                            81.39%
                                      44                                                                                44
    2. Domestically listed        26,400,00                                                                           26,400,00
                                             11.98%                                                                            11.98%
    foreign shares                         0                                                                                 0
                              220,281,6                                                                           220,281,6
    III. Total shares                             100%                                                                              100%
                                      00                                                                                00Reasons for share changed□ Applicable √ Not applicableApproval of share changed□ Applicable √ Not applicableOwnership transfer of share changed□ Applicable √ Not applicableInfluence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to commonshareholders of Company in latest year and period□ Applicable √ Not applicableOther information necessary to disclose for the Company or need to disclosed under requirement from security regulators□ Applicable √ Not applicableII. Shareholders and actual controller1. Number of shareholders of the Company and share-holding
                                                                                                                              In Share
                                                                                     深圳市特力(集团)股份有限公司 2013 年度报告全文
    Total shareholders at end of the                                    Total shareholders ended as the 5th trading day
                                                       15,587                                                                       15,375
    period                                                              before annual report disclosed
                         Shareholding of shareholders with over 5 percent shares hold and top 10 shareholders
                                                       Total                                              Number of shares pledged/frozen
                                                                                Amount
                                                  sharehold                      Amount of
                                                            Changes       of
                                       Proportion ers at                         unrestricte
    Full name of           Nature of
                                        of shares           in report restricted
    Shareholders          shareholder
                                        held (%) the end of                       d shares                State of share      Amount
                                                             period     shares
                                                    report                          held
                                                                         held
                                                    period
    SHENZHEN             State-owned                     145,870,5                 14,587,05 131,283,5
                                          66.22%                    0
    SDG CO., LTD.        corporation                               60                       6            04Guoyuan
    Securities           Foreign
                                             1.02% 2,248,355 2,154,005                      2,248,355Brokerage (Hong corporationKong) Co., Ltd.
                     Domestic nature
    Qiao Hong                                    0.83% 1,820,010 1,820,010                      1,820,010
                     person
                     Domestic nature
    Huang Xiaoling                               0.59% 1,310,240 1,310,240                      1,310,240
                     person
                     Domestic nature
    Lu Xueying                                   0.52% 1,142,846 1,142,846                      1,142,846
                     personFISRT
    SHANGHAI             Foreign
                                             0.39%    868,377 360,899                        868,377
    SECURITIES           corporationLTD.
                     Domestic nature
    Ling Fengyuan                                0.23%    517,158 4,300                          517,158
                     personYunnanInternationalTrust Co., Ltd. –
    Yunxing Growth Other                         0.23%    498,988 498,988                        498,9882007-0 eighthcollective fundtrust
                     Domestic nature
    Zhang Xiaoming                                0.2%    434,361 -29,600                        434,361
                     person
                     Domestic nature
    Chen Bing                                    0.19%    412,926 412,926                        412,926
                     personStrategy investors or general
                                       N/Acorporation comes top 10
                                                                                 深圳市特力(集团)股份有限公司 2013 年度报告全文shareholders due to rights issue (ifapplicable) (see note3)
                                        Among the top ten shareholders, there exists no associated relationship between the
                                        state-owned legal persons shareholders Shenzhen SDG Co., Ltd and other shareholders, andExplanation on associated
                                        they do not belong to the consistent actionist regulated by the Management Measure ofrelationship among the top ten
                                        Information Disclosure on Change of Shareholding for Listed Companies. For the othershareholders or consistent action
                                        shareholders of circulation share, the Company is unknown whether they belong to the
                                        consistent actionist.
                                    Particular about top ten shareholders with un-restrict shares held
                                          Amount of unrestricted shares held at end of Period                  Type of shares
         Shareholders name
                                                                (Note 4)                                    Type           Amount
                                                                                                   RMB ordinary
    SHENZHEN SDG CO., LTD.                                                              131,283,504                            131,283,504
                                                                                                   shares
                                                                                                   DomesticallyGuoyuan Securities Brokerage
                                                                                       2,248,355 listed foreign                 2,248,355(Hong Kong) Co., Ltd.
                                                                                                   shares
                                                                                                   RMB ordinary
    Qiao Hong                                                                              1,820,010                                1,820,010
                                                                                                   shares
                                                                                                   RMB ordinary
    Huang Xiaoling                                                                         1,310,240                                1,310,240
                                                                                                   shares
                                                                                                   RMB ordinary
    Lu Xueying                                                                             1,142,846                                1,142,846
                                                                                                   shares
                                                                                                   DomesticallyFISRT SHANGHAI SECURITIES
                                                                                         868,377 listed foreign                  868,377LTD.
                                                                                                   shares
                                                                                                   Domestically
    Ling Fengyuan                                                                            517,158 listed foreign                  517,158
                                                                                                   sharesYunnan International Trust Co., Ltd.
                                                                                                   RMB ordinary
    – Yunxing Growth 2007-0 eighth                                                          498,988                                 498,988
                                                                                                   sharescollective fund trust
                                                                                                   RMB ordinary
    Zhang Xiaoming                                                                           434,361                                 434,361
                                                                                                   shares
                                                                                                   RMB ordinary
    Chen Bing                                                                                412,926                                 412,926
                                                                                                   sharesExpiation on associated relationship Among the top ten shareholders, there exists no associated relationship between theor consistent actors within the top 10 state-owned legal persons shareholders Shenzhen SDG Co., Ltd and other shareholders, andun-restrict shareholders and between they do not belong to the consistent actionist regulated by the Management Measure oftop 10 un-restrict shareholders and Information Disclosure on Change of Shareholding for Listed Companies. For the other
    top 10 shareholders                     shareholders of circulation share, the Company is unknown whether they belong to the
                                                                                 深圳市特力(集团)股份有限公司 2013 年度报告全文
                                        consistent actionist.
                                        Qiao Hong holds 1,820,010 shares through guarantee securities account of customer creditExplanation on top ten shareholders
                                        transactions of China Investment Securities; Chen Bing holds 370,000 share throughinvolved in securities margin trading
                                        guarantee securities account of customer credit transactions of Essence Securities Co., Ltd.business (if applicable) (see note4)
                                        and 42,926 shares hold via BeCu account, and 412,926 shares hold in total.Agreed to buy back deals occurred in Period from shareholders
    □ Yes   √ No2. Controlling shareholder of the CompanyCorporation
                                   Legal
                                                    Date
    Controlling shareholder     rep./person in                     Organization code      Register capital         Main business
                                                established
                               charge of unit
                                                                                                             Development and
                                                                                                             operation of real estate;
                                                                                                             domestic business,
                                                                                                             material supply and
                                                                                                             marketing industry
                                                                                                             (excluding
                                                                                                             monopolized
                                                                                                             commodity and
                                                                                                             commodity under
    SHENZHEN SDG CO.,                               1982-06-2                                                    special government
                               Zhang Junlin                     192194195             RMB 1,582,820,000
    LTD.                                            0                                                            control); economic
                                                                                                             information(excluding
                                                                                                             restricted projects);
                                                                                                             import & export
                                                                                                             business; industrial
                                                                                                             transportation, tourism,
                                                                                                             financial trust, issue
                                                                                                             securities (license shall
                                                                                                             required for the above
                                                                                                             mentioned business)
                               In 2013, SDG continues to maintain a stable growth in operation, achieved operation revenue of
                               RMB 3.968 billion for the whole year, 41.26 percent up over same period of last year; total profit
                               amounting as RMB 701 million with 122.54 percent up year-on-year. During the “twelve-five”Operation result, financial
                               period, the Group took the high-end travel and characteristic real estate as the leading industry,status, cash flow and future
                               optical communications as pillar industry, in line with the principle of “integration of resourcedevelopment strategy etc.
                               optimization, improvement of strategy transformation and development of industry leaping”, playing
                               the resources advantage totally, developed optical communications steady by combining industry
                               operation and capital operation closely; energetically develop high-end tourism and characteristic real
                                                                                深圳市特力(集团)股份有限公司 2013 年度报告全文
                                estate, deepen to carried out innovation of business mode and management mode, re-shaping the
                                brand and EI of SDF, trying to create a famous brand enterprise Group, which has a strong
                                competitive, core with high-end tourism, and owns harmonious development of characteristic real
                                estate and optical communications.Equity of otherforeign/domestic listedcompany that controlled by
                                SDG Informationand have joint-stock fromcontrolling shareholder inreporting periodChanges of controlling shareholder in reporting period
    □ Applicable   √ Not applicable3. Actual controller of the CompanyCorporation
                                    Legal
                                                      Date
      Actual controller         rep./person in                   Organization code       Register capital       Main business
                                                 established
                                charge of unitShenzhen Municipal People’
    s Government State-owned                         2003-07-3
                                Zhang Xiaoli                   K31728067             Not applicable         Not applicable
    Assets Supervision and                           0Administration Commission
                                Actual controller of the Company, Shenzhen State-owned Assets Supervision and AdministrationOperation result, financial
                                Commission, exercise contributor to SDG (first largest shareholder of the Company) on behalf of thestatus, cash flow and future
                                Government of Shenzhen City, office address locate at Investment Building, Shenzhen Avenue,development strategy etc.
                                Futian District, ShenzhenChanges of actual controllers reporting period□Applicable √Not applicableProperty right and controlling relationship between the actual controller and the Company is as follow:
       Shenzhen Municipal Peoples Government State-owned Assets Supervision and Administration Commission
                                                 43.30%
                                                     Shenzhen SDG Co., Ltd.
                                                 66.22%
                                            Shenzhen Tellus Holding Co., Ltd.
                                                                                     深圳市特力(集团)股份有限公司 2013 年度报告全文Actual controller controlling the Company by entrust or other assets management□Applicable √Not applicable4. Particulars about other legal person shareholders with over 10% shares held
                                 Legal rep. /
                                                                                                                          Main operation
                                  Person in        Date of
    Legal person shareholder                                        Organization code              Register capital             business or
                                charge of the foundation
                                                                                                                       management activities
                                     UnitIII. Share holding increasing plan proposed or implemented in reporting period fromshareholder of the Company and its concerted action person
                                                                                                                              Disclosure dated
    Shareholder/conc                           Ratio of shares                           Ratio of shares
                      Shares holding                            Shares holding                           Initial disclosure      for end of
      erted action                        plans to increased                        actually increased
                     plans to increased                        actually increased                               date            shareholding
        person                                   (%)                                       (%)
                                                                                                                                 increasedExplanation on othersNil
                                                                         深圳市特力(集团)股份有限公司 2013 年度报告全文
            Section VII. Particulars about Directors, Supervisors, Senior Executives
                                                              and EmployeesI. Changes of shares held by directors, supervisors and senior executives
                                                                                              Increasing Decreasing
                                                                                 Shares                                      Shares
                                                                                              shares held shares held
                          Working                         Start dated End date   held at                                     held at
               Title                     Sex   Age         of office of office                  in this       in this
    Name                      status                                             period-beg                                   period-end
                                                             term      term
                                                                                                period        period
                                                                               in (Share)                                    (Share)
                                                                                               (Share)        (Share)
    Zhang                    Currently                        2012-06-0 2015-06-0
            Chairman                 M               51                                   0               0             0              0
    Ruili                    in office                        6         5
            Director,    Currently                        2012-06-0 2015-06-0
    Luo Bojun                            M               52                                   0               0             0              0
            GM           in office                        6         5
            Director,    Currently                        2012-06-0 2015-06-0
    Fu Bin                               M               52                                   0               0             0              0
            CFO          in office                        6         5
    Zhang                    Currently                        2012-06-0 2015-06-0
            Director                 M               55                                   0               0             0              0
    Jianmin                  in office                        6         5
                         Currently                        2012-06-0 2015-06-0
    Yu Lei      Director                 F               46                                   0               0             0              0
                         in office                        6         5
    Jiang                    Currently                        2013-03-2 2015-06-0
            Director                 M               53                                   0               0             0              0
    Hongjun                  in office                        8         5
    Liu         Independe Currently                           2012-06-0 2015-06-0
                                     F               60                                   0               0             0              0
    Hongling    nt Director in office                         6         5
    Wei         Independe Currently                           2012-06-0 2015-06-0
                                     M               42                                   0               0             0              0
    Shaohui     nt Director in office                         6         5
            Independe Currently                           2012-11-1 2015-06-0
    Ji Huibin                            M               44                                   0               0             0              0
            nt Director in office                         4         5
    Guan                     Currently                        2012-06-0 2015-06-0
            Supervisor               M               60                                   0               0             0              0
    Zhicai                   in office                        6         5
    Zhang                    Currently                        2012-06-0 2015-06-0
            Supervisor               M               44                                   0               0             0              0
    Xinliang                 in office                        6         5
    Fu                       Currently                        2012-06-0 2015-06-0
            Supervisor               M               41                                   0               0             0              0
    Chunlong                 in office                        6         5
    Wang                     Currently                        2012-06-0 2015-06-0
            Supervisor               M               56                                   0               0             0              0
    Guangye                  in office                        6         5
    Ke                       Currently                        2012-06-0 2015-06-0
            Supervisor               F               46                                   0               0             0              0
    Wensheng                 in office                        6         5
                                                                                深圳市特力(集团)股份有限公司 2013 年度报告全文
              Standing
                           Currently                             2013-03-1 2015-06-0
    Guo Jian      deputy                   M                    49                                  0             0       0           0
                           in office                             2         5
              GM
    Ren           Deputy       Currently                             2012-06-0 2015-06-0
                                       M                    51                                  0             0       0           0
    Yongjian      GM           in office                             7         5
              Deputy
              GM,
    Guo                        Currently                             2012-06-0 2015-06-0
              secretary                M                    49                                  0             0       0           0
    Dongri                     in office                             7         5
              of the
              Board
              Deputy       Currently                             2012-06-0 2015-06-0
    Feng Yu                                M                    47                                  0             0       0           0
              GM           in office                             7         5
    Zhang                      Office                                2012-06-0 2013-03-1
              Director                 M                    49                                  0             0       0           0
    Junlin                     leaving                               6         1
    Total            --          --         --          --            --        --               0             0       0           0II. Post-holdingMajor working experience of directors, supervisors and senior executive at the present in latest five years
      Name                                 Main work experience and holding the post or taking part-time job
                     He successively took the posts of Divisional Manager of Financial Company of Shenzhen Special Economic Zone
                     Development (Group) Company and Manager of Assets Department of Shenzhen Special Economic Zone
                     Development (Group) Company; currently he serves as Chairman of the Board of the Group. At the same time, heZhang Ruili
                     concurrently Chairman of the Shenzhen Auto Industry and Trade Corporation (the controlling subsidiaries of the
                     Company), Chairman of Shenzhen SD Huari Automobile Co. Ltd. (the controlling subsidiaries of the Company),
                     Chairman of Shenzhen Xinglong Machinery Module Co., Ltd. (the associated company of the Company)
                     He ever took the post of Deputy Manager of HR Dept. and Director of Human Resource Communication Training
                     Center in the Company, and Deputy General Manger of Shenzhen Auto Industry and Trade Corporation. Now he
                     serves as Director and General Manager of the Company, at the same time, he concurrently took the posts of
                     Director of Shenzhen Auto Industry and Trade Corporation (the controlling subsidiary of the Company), Director of
                     Shenzhen SD Huari Automobile Enterprise Co. Ltd. (the controlling subsidiaries of the Company), Chairman of the
    Luo Bojun            Board of Shenzhen Teyao Investment Development Co., Ltd. (the controlling subsidiary of the Company),
                     Chairman of the Board of Shenzhen Tellus Xing Investment Co., Ltd. (jointed venture of the Company), Chairman
                     of the Board of Shenzhen Tellus Gem Investment Co., Ltd( the joint-venture company of the Company), deputy
                     chairman of Shenzhen Dongfeng Automobile Co., Ltd. (the associated company of the Company) ,director of
                     Shenzhen Xinglong Module Co., Ltd. (the associated company of the Company) and deputy chairman of Shenzhen
                     Zung Fu Tellus Auto Service Co., Ltd. (the associated company of the Company).
                     He ever took the post of lecturer in Hunan College of Finance and Economics, Business Manager of Assets
                     Operation Department in Shenzhen SDG Co., Ltd., CFO of Shenzhen SDG Xiaomeisha Tourism Center. He now
    Fu Bin               acts as Director and CFO of the Group. At the same time, he concurrently took the post of Director of Shenzhen
                     Auto Industry and Trade Corporation (the controlling subsidiaries of the Company). And serve as the director of
                     China Perfect Machinery Industry Corp., Ltd. (the associated company of the Company).
                                                                          深圳市特力(集团)股份有限公司 2013 年度报告全文
                He ever took the post of secretary of committee for discipline inspection of Shenzhen SDG Co., Ltd. Now he acts as
                the General Manager of Shenzhen SDG Co., Ltd., director of the Company and at the same time, serve as theZhang Jianmin
                director of Hon Kwok Sanhe Co., Ltd., director of Shenzhen International Enterprise Co., Ltd. and director of
                Shenzhen SDG Information Co., Ltd. respectively.
                She ever took the post of secretary of international corporation dept. of Vocational Education Training Center of
                Chaoyang District, Beijing, the deputy director, director and deputy chief of Luohu Branch of Shenzhen Home Land
    Yu Lei          Planning Bureau, the vice director and director of State-owned Assets Supervision and Administration Commission
                of Peoples Government of Shenzhen; now she serves as deputy GM of SHENZHEN SDG CO., LTD. and Director
                of the Company.
                He served as teaching assistant in Jiangsu University, translator in Jiangsu Engineering Technology Institute,
                director of foreign affire of Hainan Yangpu Development Corp., GM assistant of Shenzhen New Technology
                Enterprise, project manager of L.A.Enterprises(USA),Inc., executive director of Singapore GITIC International Pte.
                Ltd., director and deptuy GM of Grand Success (Hong Kong) Limited, chief economist of Shenzhen OceanusJiang Hongjun
                Group, Chairman assistant of Guorong Hongshan Entergy Investment Co., Ltd., inspector-general of Chuang Yi
                Group, independent director of the Company and deputy director of entperise II dept. of SDG; now he serves as
                director of enterprise I dept. of SHENZHEN SDG CO., LTD, controlling shareholder of the Company and Director
                of the Company.
                She ever took the post of Assistant Accountant of Financial Department of Tianjin Components Industries
                Corporation, Senior Staff of Tianjin Electronic Instruments Management Bureau, Deputy Head of Tianjin
    Liu Hongling    Zhonghuan Certified Public Accountants, CFO of Shenzhen Yongxing Industrial and Commercial Corporation,
                Head of Shenzhen Weiming Appraisal Institute, and Chairman of Shenzhen Sinocoms Appraisal Co., Ltd. Now she
                serves as deputy GM of Beijing Jimkai Sinocoms Appraisal Co., Ltd. and independent director of the Company.
                He ever took post of law assistant and full-time attorney of Guangdong Shu Jun Law Firm. Now he serves as senior
    Wei Shaohui     partner of Guangdong Shu Jun Law Firm, and independent director of the Company; meanwhile serves as
                independent director of Longhao Tiandi Co., Ltd. and Shenzhen Click Technology Co., Ltd. respectively.
                He ever took the post of project manager, director of engineering dept. deputy GM and GM of Shenzhen Jianyi
                Municipal Engineering Co., Ltd; director of engineering dept. and director of operation dept. of Shenzhen JianyiJi Huibin
                Industrial Co., Ltd. Now he serves as deputy GM of Pang Yuan Real Estate Development Co., Ltd. and independent
                director of the Company.
                He ever took the post of Workers, Head of Workshop Section, and Secretary Of Youth League Committee in
                state-owned 5501 plant, and worked in Shenyang Agricultural Machinery Automotive Industry Bureau and
                Shenyang Automotives Industry General Corporation. He also took the posts of Deputy Officer, Deputy Head and
                Head of Enterprise Management Department, Director of Reform Office, Director of the Board, Vice Secretary
    Guan Zhicai     General of the Board of Shenyang Jinbei Automotive Company Limited; Secretary of Party Committee and Deputy
                GM of Shenzhen Radio Industry and Trade Corporation, Deputy GM of Shenzhen Liming Industry Corporation;
                Deputy GM of Shenzhen SDG Liming Group Co., Ltd., Vice Chairman and GM and Secretary of Party Committee
                of Shenzhen SDG Liming Group Co., Ltd., Chairman and Secretary of Party Committee of Shenzhen SDG Liming
                Group Co., Ltd. Now he acts as Chairman of Supervisory Committee of the Company.
                 He ever took the post of Manager of Financial Dept in Machinery And Equipment Import And Export Company,
                Deputy Manager of Shenzhen SDG Co., Ltd. Now, he acts the supervisor of the group, Head of Audit andZhang Xinliang Supervision Dept. and Employees and supervisors of Shenzhen SDG Co., Ltd, concurrently the Secretary of the
                supervisor committee of Shenzhen SDG Co., Ltd, and Supervisor of Shenzhen International Enterprise Co., Ltd.and
                Supervisor of the Company.
                                                                           深圳市特力(集团)股份有限公司 2013 年度报告全文
                He ever took the Business Deputy General Manage of HR Department of Shenzhen SDG Co., Ltd., Deputy Team
    Fu Chunlong     Leader in Work Team of Shenzhen Tefa Huatong Packaging Co., Ltd. Now, he is the Minister of HR Department of
                Shenzhen SDG Co., Ltd. and Supervisor of the Company.
                He ever took the post of Deputy General Manger of Financial Department and Deputy General Manager of Auditing
                Department in Shenzhen Tellus Holding Co., Ltd. Now, he acts as the Manager of Auditing Department in Shenzhen
                Tellus Holing Co., Ltd and Employee Supervisor of the group. Meanwhile, he serves as supervisor of Shenzhen
                Auto Industry and Trade Corporation (the controlling subsidiaries of the Company), supervisor of Shenzhen Tellus
                Xinyongtong Automobile Development Co., Ltd. (the controlling subsidiaries of the Company) and of Shenzhen SDWang Guangye Tellus Property Management Co., Ltd. (the controlling subsidiaries of the Company); and serves as supervisors in
                the follow units as Shenzhen Xingyongtong Auto Vehicle Inspection Equipment Co., Ltd. (the controlling
                subsidiaries of the Company), Shenzhen SD Tellus Real Estate Co., Ltd. (the controlling subsidiaries of the
                Company), Shenzhen Tellus Real Estate Exchange Co., Ltd. (the controlling subsidiaries of the Company),
                Shenzhen Xinglong Machinery Module Co., Ltd. (affiliated company of the Company) and Shenzhen Tellus Gem
                Investment Co., Ltd. (joint-venture of the Company) respectively.
                He ever acts as the teacher in School of Guangdong Foreign Trade, major accountant of Shenzhen SDG Co., Ltd.
                and deputy GM and GM of the Accounting and Financial Dept. of the Company. Now, he acts as the GM of
                Accounting and Financial Dept. and staff supervisor of the Company, director of Shenzhen Tellus Xinyongtong
                Auto Development Co., Ltd., director of the Shenzhen Zhongtian Industrial Co., Ltd.(controlling subsidiary of theKe Wensheng
                Company), and Shenzhen Teyao Investment Development Co., Ltd.; serve as the supervisor of Shenzhen SD Tellus
                Property Management Co., Ltd. (the controlling subsidiaries of the Company), Shenzhen Telixing Investment Co.,
                Ltd.(joint-venture of the Company), Shenzhen Dongfeng Automobile Co., Ltd. And Shenzhen Auto Industry
                Imp-Exp Co., Ltd. (joint-venture of the Company) respectively.
    Guo Jian        He ever took posts of software engineer and project leader of Shenzhen Changhong Telecommunication Equipment
                Co., Ltd., business vice GM and senior engineers of development dept., enterprise management dept. and enterprise
                I dept. of SDG, deputy GM of enterprise I dept. of SDG, deputy director , director of enterprise management dept.
                of SDG, deputy GM of Shenzhen SDG Xiaomeisha Tourism Center, deputy GM of Shenzhen SDG Information Co.,
                Ltd., and director of planning dept. (enterprise I dept.) of SDG. Now he serves as standing deputy GM of the
                Company and hold concurrent posts of director of Shenzhen SD Huari Automobile Enterprise Co.Limited
                (controlling subsidiary of the Company), director of Shenzhen Xinyongtong Auto Vehicle Inspection Equipment
                Co., Ltd. (controlling subsidiary of the Company), director of Shenzhen Dongfeng Automobile Co., Ltd. (affiliated
                enterprise of the Company) and director of Shenzhen Auto Industrial Import & Export Co., Ltd. (affiliated enterprise
                of the Company)
                He ever took the posts of Manager of China Marketing Department of Shanghai Pepsi Food Co., Ltd. and Assistant
                General Manager of the Company. He now acts as Deputy General Manager and secretary of the Board of the
    Guo Dongri      Company. Meanwhile, he serves as director of Shenzhen Xinyongtong Auto Vehicle Inspection Equipment Co., Ltd.
                (the controlling subsidiary of the Company) and director of Shenzhen Auto Industrial Import & Export Co., Ltd.
                (joint-venture of the Company)
                He ever took the posts of Deputy Manager of Planning & Financial Dept. and Manager of Auditing Dept. in
                Shenzhen Special Economic Zone Development (Group) Company; Director and CFO of the Company. He now
                acts as Deputy General Manager of the Company and concurrently holds the post of Director of Shenzhen AutoRen Yongjian
                Industry and Trade Corporation (the controlling subsidiary of the Company), Director of Shenzhen Tellus Xing
                Investment Co., Ltd. (joint-venture of the Company), Director of Shenzhen Tellus Gem Investment Co.,
                Ltd.( joint-venture company of the Company) .
                                                                              深圳市特力(集团)股份有限公司 2013 年度报告全文
                  He ever took the Deputy General Manger of Shenzhen Xianke Real-estate Co., Ltd., Manager of Investment
                  Department of China Sports Group Industry Co., Ltd.; Director to the Office of General Manger of Shenzhen SDG
                  Co., Ltd; and Supervisor of the Company. Now, he acts as Deputy General Manager of the Company. Meanwhile, heFeng Yu
                  serves as director of Shenzhen Auto Industry and Trade Corporation (the controlling subsidiaries of the Company),
                  Shenzhen SD Huari Auto Enterprise Co., Ltd. (the controlling subsidiaries of the Company) and Director of
                  Shenzhen Zung Fu Tellus Auto Service Co., Ltd. (associated company of the Company).Post-holding in shareholders unit√Applicable □Not applicable
                                                                                                                      Receiving
                                                                              Office term       Office term      remuneration from
       Name              Name of shareholders units             Position
                                                                               start from          ended         shareholders units
                                                                                                                        (Y/N)
                                                             General
    Zhang Jianmin SHENZHEN SDG CO., LTD.                                                                           Y
                                                              Manager
    Yu Lei           SHENZHEN SDG CO., LTD.                      Deputy GM                                         Y
                                                             Director of
    Jiang Hongjun SHENZHEN SDG CO., LTD.                         Enterprise I                                      Y
                                                             dept.
                                                             Director of
                                                             audit &
    Zhang Xinliang SHENZHEN SDG CO., LTD.                                                                          Y
                                                             supervision
                                                             department
                                                             Director of
    Fu Chunlong      SHENZHEN SDG CO., LTD.                      H&R                                               Y
                                                             departmentExplanation on
    holding post     Except for the above mentioned, other directors, supervisor and senior executives are not taking post in
    shareholders     shareholders units.unitPost-holding in other unit√Applicable □Not applicable
                                                                                                                      Receiving
                                                                              Office term       Office term
    Name                         Name of other units                Position                                         remuneration from
                                                                               start from          ended
                                                                                                                   other units (Y/N)
                 Beijing Jimkai Sinocoms Appraisal Co.,
    Liu Hongling                                                 Deputy GM                                         Y
                 Ltd
                                                             Senior
    Wei Shaohui      Guangdong Shu Jun Law Firm                                                                    Y
                                                             partner
                 Pang Yuan Real Estate Development Co.,
    Ji Huibin                                                    Deputy GM                                         Y
                 Ltd.
                                                                                  深圳市特力(集团)股份有限公司 2013 年度报告全文Explanation onholding post in Except for the above mentioned, other directors, supervisor and senior executives are not taking post in other units.other unitIII. Remuneration for directors, supervisors and senior executivesDecision-making procedures, determine basis and actual payment of remuneration for directors, supervisors and senior executivesThe Company strictly in accordance with relevant regulations of “Management System of Human Resources ofTellus Group” and “Remuneration Management Plan of Tellus Group (Trial)” continues to perfect inspectionrules and seriously exercise performance evaluation, carry out remuneration based on evaluation results.Remuneration for directors, supervisors and senior executives in reporting period
                                                                                                                     In ten thousand Yuan
                                                                                                             Total
                                                                                          Total                          Remuneration
                                                                                                         remuneration
                                                                     Post-holding      remuneration                         actually
    Name             Title            Sex              Age                                              obtained from
                                                                         status       obtained from                       obtained at
                                                                                                         shareholders
                                                                                       the Company                         period-end
                                                                                                             unit
                                                                    Currently in
    Zhang Ruili      Chairman        M                             51                              69.83                              69.83
                                                                    office
                                                                    Currently in
    Luo Bojun        Director, GM    M                             52                              65.31                              65.31
                                                                    office
                 Chairman of
                                                                    Currently in
    Guan Zhicai      supervisory     M                             60                              60.18                              60.18
                                                                    office
                 committee
                                                                    Currently in
    Fu Bin           Director, CFO M                               52                                 53.8                             53.8
                                                                    office
                 Standing                                           Currently in
    Guo Jian                         M                             49                              21.13                              21.13
                 deputy GM                                          office
                                                                    Currently in
    Ren Yongjian     Deputy GM       M                             51                                 53.8                             53.8
                                                                    office
                                                                    Currently in
    Guo Dongri       Deputy GM       M                             49                                 53.8                             53.8
                                                                    office
                                                                    Currently in
    Feng Yu          Deputy GM       M                             47                                 53.8                             53.8
                                                                    office
                                                                    Currently in
    Wang Guangye Supervisor          M                             56                              27.83                              27.83
                                                                    office
                                                                    Currently in
    Ke Wensheng      Supervisor      F                             46                              26.92                              26.92
                                                                    office
                 Independent                                        Currently in
    Liu Hongling                     F                             60                                   5                                   5
                 Director                                           office
                                                                                   深圳市特力(集团)股份有限公司 2013 年度报告全文
                 Independent                                         Currently in
    Ji Huibin                           M                           44                                  5                         5
                 Director                                            office
                 Independent                                         Currently in
    Wei Shaohui                         M                           42                                  5                         5
                 Director                                            office
      Total             --                 --             --                  --                501.4            0         501.4Delegated equity incentive for directors, supervisors and senior executives in reporting period□ Applicable √ Not applicableIV. Post-leaving and dismissals for directors, supervisors and senior executives
      Name                  Title               Type           Date                                  Reasons
    Zhang Junlin       Director             Office leaving   2013-03-11           Work
    Jiang Hongjun      Director             Be elected       2013-03-28           Nominated by largest shareholder
                   Standing deputy
    Guo Jian                                Engagement       2013-03-11           Engagement
                   GMV. Changes of core technology team or key technicians in reporting period (not includingdirectors, supervisors and senior executives)NilVI. Employees of the Company
                Employee in-post                                                       578
    Retired employees expenses borne by the                                               330
                Company
                                                Professional composition
      Administration staff (management)                                                111
                  Financial staff                                                      39
                    Technician                                                         60
                 Sales personnel                                                       57
               Production personnel                                                    147
                      Others                                                           164
                        Total                                                          578
                                                 Educational background
                      Master                                                           16
                 Bachelor degree                                                       68
                  Junior college                                                       125
                                                                   深圳市特力(集团)股份有限公司 2013 年度报告全文
        Technical secondary school                                     127
                   Other                                               242
                   Total                                               578Remuneration policy: The Company strictly in accordance with relevant regulations of “Management System ofHuman Resources of Tellus Group” and “Remuneration Management Plan of Tellus Group (Practice)” ,formulated inspection rules and seriously exercise performance evaluation, carry out remuneration based onevaluation results.Training planning: the Company always attaches importance to the training and development work for employees;create innovation into part of the long-term development strategy of the Company. Combine with current situationof the Company, and take annual planning, position requirement and responsibility as well as enterprisesdevelopment needs into consideration, the Company formulated a systematic training plans and talent cultivationprojects; strengthen training works in aspect of multi-tiered, multi-channel, multi-field and multi-form, includinginduction training for new employees, business training for on-job employees, operation skill training for workers
                                                                    深圳市特力(集团)股份有限公司 2013 年度报告全文at the production line, upgrade training for manager, project development and risk control training, continues toimprove general quality for employees in order to achieve a win-win situation for the Company and employees.
                                                                   深圳市特力(集团)股份有限公司 2013 年度报告全文
                       Section VIII. Corporate GovernanceI. Brief introduction about corporate governanceDuring the reporting period, the Company has been observing the Company Law, Securities Law and relevantrules issued by the CSRC, for the purpose of improving its legal person governance structure and standardizing itsoperation level. According to the Articles of Association, Procedure Rules of General Meeting, Procedure Rules ofBoard of Directors, Procedure Rules of Supervisory Committee, Working Rules of Independent Directors,Working Rules of General Manager and a series of rules and regulations, the Company maintained normalperformance of the duties and obligations of its general meeting, board of directors and supervisory committee.Each of its directors and supervisors can perform their duties earnestly. Its corporate governance conformed to therequirements of certain regulation documents issued by the CSRC concerning corporate governance of listedcompany.In the reporting period, in line with requirment of internal control, the Company formulated governancemechanism as “Management System of Strategy Planning” with its actual condition to improve the internaldecision-making and operation mechanism and standardize legal person governance structure.Whether there are differences between the corporate governance and the "Company Law" and the relevantprovisions of China Securities Regulatory Commission□ Yes √ NoThere were no significant differences in corporate governance and the "Company Law" and the relevantprovisions of China Securities Regulatory Commission.The development of special activities for corporate governance, and establishment and implementation ofregistration and management system for inside information insider(I) Implementation of special activity in respect of corporate governance: pursuant to the Circular on InvestorProtection Propaganda Activity of Listed Company (SZJGSZ(2012)No.60) issued by the securities regulatorybureau of Shenzhen, the Company carried out activities of investor protection propaganda and investorscommunication in many ways, such as set up a “Investor Protection” column in Companys website, replyinginvestors questions via the interactive platform of SSE and report documents etc.; to build understanding on theCompany, hawking ideas of value investing to investors, leading investor to judge a companys value in a reasonway, improving the scientific of investor decision, and protect legal rights of the investors. 2. On 13 September2013, the Company participate in the “Interactive Platform of Investors Relationship for Listed Companies inShenzhen and Investors Reception On-line” that jointly hold by Shenzhen Securities Regulatory Bureau, TheListed Company Association of Shenzhen and Shenzhen Securities Information Co., Ltd., dozens of hot issues ofCompany conditions, market environment, development strategy, operation status and sustainable developmentplanning from the investors are reply through on-line communication, present a sound communication with theinvestors and shows a idea of the Company as investor-oriented all the time. 3. In routine works, the Companyanswers investors questions timely through network platform, inquiry telephone from investors and investorsinteractive platform of Shenzhen Stock Exchange, communicate with small and medium-sized investors. (II)Determination and implementation of insider registration management system: the Company has been paying
                                                                           深圳市特力(集团)股份有限公司 2013 年度报告全文great attention to standardization of insider information management. In order to standardize its insiderinformation management, strengthen insider information confidentiality and disclose information on a fair basis,according to relevant regulations, the Company considered and approved the Information Disclosure WorkingSystem at the 5th extraordinary meeting of the 5th board on 20 July 2007. the Insider Information RegistrationSystem was considered and approved at the 2nd meeting of the 6th board on 27 October 2009, pursuant to which,the Company expressly determined the principal organ in charge of information disclosure, the internal reportingsystem, scope of insider information, insider information management rules, filing registration methods andconfidential obligations. The Company executed related policies in strict manner, took effective measures beforedisclosing material sensitive information, minimized the scope of insider, and made propaganda in respect ofinsider confidential obligations, thus to prevent escape of insider information and insider transaction. In 2013, theCompany found that no insider took use of insider information to trade its stock out of line, and no insider hadreceived supervisory measures and administrative punishment from the regulatory authorities due to involvementin insider transaction.II. Annual general meeting and extraordinary general meeting held in reporting period1. Annual General Meeting in the report period
                                         Name of meeting
    Session of meeting          Date                                    Situation         Date of disclosure       Index of disclosure
                                                 motion
                                       Deliberated the
                                       follow proposals as
                                       “Work Report of the
                                       Board for year of
                                       2012”;”Audit Report
                                       of 2012” (Chinese
                                       and English
                                                                                                            “Resolution Notice
                                       Version);”Profit
                                                                                                            of Annual General
                                       Distribution Plan for
                                                               All proposals have                           Meeting of 2012”
                                       year of
                                                               been passed with                             (No.: 2013-023)
                                       2012”;”Annual
                                                               100% in total voting                         published on
    Annual General                         Report of 2012”
                      2013-06-25                               rights of attendant    2013-06-26            Securities Times,
    Meeting of 2012                        (Chinese and
                                                               shareholders in                              Hong Kong
                                       English Version);
                                                               favor, 0 in against                          Commercial Daily
                                       “Financial Result
                                                               and 0 abstention                             and Juchao Website
                                       Report of 2012”;
                                                                                                            (www.cninfo.com.cn
                                       “Financial Budget
                                                                                                            )
                                       for year of 2013”;
                                       “Work Report of
                                       Supervisory
                                       Committee for year
                                       of 2012”;
                                       “Engagement of
                                       Audit Institution for
                                                                         深圳市特力(集团)股份有限公司 2013 年度报告全文
                                    year of 2013”;
                                    “Engagement of
                                    Audit Institution for
                                    Internal Control of
                                    2013”2. Extraordinary general meeting in the report period
                                      Name of meeting
    Session of meeting          Date                                  Situation         Date of disclosure       Index of disclosure
                                             motion
                                                                                                          “Resolution Notice
                                                                                                          of First
                                    Deliberated the
                                                                                                          Extraordinary
                                    “Investment project All proposals have
                                                                                                          General Meeting of
                                    of Tellus Shuibei        been passed with
                                                                                                          2013” (No.:
    First Extraordinary                 Jewelry Building         100% in total voting
                                                                                                          2013-007) published
    General Meeting of    2013-01-24    (Tentatively)” and      rights of attendant    2013-01-25
                                                                                                          on Securities Times,
    2013                                “proposal of            shareholders in
                                                                                                          Hong Kong
                                    planning to sales        favor, 0 in against
                                                                                                          Commercial Daily
                                    some of the              and 0 abstention
                                                                                                          and Juchao Website
                                    property”
                                                                                                          (www.cninfo.com.cn
                                                                                                          )
                                    Deliberated the
                                    “proposal of selling
                                    property of 6/F and
                                    7/F of Dongfeng
                                                                                                          “Resolution Notice
                                    Building”; “proposal
                                                                                                          of Second
                                    of preemption right
                                                                                                          Extraordinary
                                    for 75 percent equity All proposals have
                                                                                                          General Meeting of
                                    of Shenzhen              been passed with
    Second                                                                                                    2013” (No.:
                                    Dongfeng                 100% in total voting
    Extraordinary                                                                                             2013-013) published
                      2013-03-28    Automobile Co.,          rights of attendant    2013-03-29
    General Meeting of                                                                                        on Securities Times,
                                    Ltd. abandon by          shareholders in
    2013                                                                                                      Hong Kong
                                    Shenzhen Auto            favor, 0 in against
                                                                                                          Commercial Daily
                                    Industry and Trade       and 0 abstention
                                                                                                          and Juchao Website
                                    Corporation”;
                                                                                                          (www.cninfo.com.cn
                                    “Supplement Mr.
                                                                                                          )
                                    Jiang Hongjun as
                                    Director of 7th
                                    session of the
                                    Board ”III. Responsibility performance of independent directors in report period
                                                                                     深圳市特力(集团)股份有限公司 2013 年度报告全文1. The attendance of Board meetings and general meeting for independent directors
                                         Attendance of Board meetings for independent directors
                        Times of Board
                                                                                                                        Absent the
                            meeting                                Times of             Times of
    Name of independent                           Times of present                                          Times of    Meeting for the
                          supposed to                             attending by          entrusted
        director                                 in person                                              Absence     second time in a
                         attend in the                           communication          presence
                                                                                                                        row (Y/N)
                         report period
    Liu Hongling                             10                  3                   7                  0              0N
    Wei Shaohui                              10                  3                   7                  0              0N
    Ji Huibin                                10                  3                   7                  0              0NTimes presented in general meeting by
                                                                                                                                     3independent directorsExplanation of absent the Board Meeting for the second time in a rowNil2. Objection for relevant events from independent directorsWhether independent directors come up with objection about companys relevant matters or not□ Yes √ NoIndependent directors has no objections for relevant events in reporting period3. Other explanation about responsibility performance of independent directorsWhether the opinions from independent directors have been adopted or not
    √Yes   □ NoExplanation on advice that accepted/not accepted from independent directorsIn accordance with relevant laws and regulation of “Company Law”, “Securities Laws”, “Listing Rules forStocks” and “System of Independent Directors”, independent directors focus on the normative of Companysoperation, performed responsibility independently and carry out their duties diligently; issued independent andfair-ness independent opinions on the audit institution, appointed in reporting period for financial report andinternal control of the Company, related transactions, capital contact with related parties and external guarantee,profit distribution, amendment of article of association, director and senior executives changes as well as otherevents needs independent opinions issued, which perfected supervision mechanism for the Company and play acorresponding role in protecting legal interest of the Company and whole shareholders.IV. Responsibility performance of subordinate special committee of the Board in reportperiodThe Company set three special committees under the board of directors, namely the strategic committee, the auditcommittee as well as the remuneration and examination committee.1. Duty performance of the strategic committeeThe strategic committee of the board is specially set according to general meeting resolution and the Articles of
                                                                   深圳市特力(集团)股份有限公司 2013 年度报告全文Association, responsible for study on the long term development strategy and material investment decisions andraising its recommendations. The committee comprised of 5 directors, one of which is independent director, andthe committee is chaired by chairman of the board. During the reporting period, the committee performed itsduties according to the Working Rules of the Strategic Committee, with each of its members doing their best toperform the respective duties. The Committee takes part in the discussion on the operation development planningand related investment projects. Individual opinions and recommendations are encouraged. It emphasizes on legalperson governance and standardized operation. By raising measures to prevent operation risks, the committeeplays an important role in increasing the core competitiveness, strengthening scientific decisions and enhancingefficiency of material investment decision as well as the quality of decisions.2. Duty performance of the audit committeeDuring the reporting period, the committee performed its duties according to the Articles of Association andWorking Procedures of the Audit Committee. The committee pays close attention to the operation, finance andimplementation of standard internal control. It strengthens communications with the relevant responsibledepartments within the Company, and reviews the effective appraisal on the internal control and corporate riskmanagement by means of telecommunication, investigation and reporting. It reviews that whether the operation,finance and accounting policy of the Company follows relevant laws and rules, and provides management andaudit opinions.During the annual audit, the audit committee took active attitude in relevant works. Prior to the officialinvolvement of Ruihua Certified Public Accountants (LLP) (hereinafter referred to as Ruihua) in the annual audit,the committee determined the working arrangement for 2013 annual audit after negotiation with Ruihua on 09December 2013, which has been submitted to the independent directors of the Company. On 21 January 2014, theaudit committee held meeting to review the financial statements prepared by the Company, and believed that thepreparation of such statements was in compliance with provisions of enterprise accounting principles, reflectingthe financial position as of the end of 2013 and operating results of 2013 on a truthful basis. Thus, the committeeagreed to submit the financial statements and related information to Ruihua for audit.After the official audit by Ruihua, members of the audit committee made calls to enquire the audit progress, andurged the accounting firm to complete audit as scheduled according to the working arrangement, so as to ensureprompt disclosure of its annual report. Meanwhile, the committee conducted communications with theaccountants in respect of the issues found in audit works.After the issuance of initial audit opinions by the accountants, the audit committee held meeting on 24 March2014 to re-review the financial statements, and formed written opinions and resolutions in respect of the annualfinancial statements, audit work summary report and reengagement of CPA, which were submitted to the board forconsideration.3. Duty performance of the remuneration and examination committeeDuring the reporting period, the remuneration and examination committee reviewed the remuneration of directors,supervisors and senior management of the Company. The entire members of the committee believed that theremuneration payment in the reporting period complied with the Companys performance examination system.
                                                                             深圳市特力(集团)股份有限公司 2013 年度报告全文The remuneration of directors, supervisors and senior management were determined according to the relevantsystems of the Company.V. Works from Supervisory CommitteeWhether the Company has risks or not in reporting period that found in supervisory activity from supervisory committee□ Yes √ NoSupervisory committee has no objections for the supervise matters in reporting periodVI. Independency of the Company relative to controlling shareholders’ in aspect of businesses,personnel, assets, institution and financeThe Company has been independent from the controlling shareholders in terms of business, personnel, asset,institution and finance. The Company has independent and complete business and is able to operateindependently.(I) Business: the Company belongs to independent legal person entity. Being completely independent fromcontrolling shareholders, it has independent and complete business system and is able to operate independently.The Company has independent production, sales and service systems and its major business. There is nointer-competition between the Company and its controlling shareholders and related parties.(II) Personnel: the Company establishes complete labor, human resources and salary management systems. All thesenior management of the Company receives remuneration from the Company since they are employed by theCompany, and no one takes position in the enterprises owned by shareholders.(III) Assets: the Company is completely independent from the controlling shareholder in terms of assets; each ofthem is able to operate independently. The Company has complete and separate purchase system, productionsystem, sales system and relevant service system. Intangible assets including industry property, trademark andnon-proprietary technology are owned by the Company on separate basis.(IV) Finance: the Company has independent financial accounting department which set independent accountingcalculation system and finance management system. No controlling shareholder intervenes in the capitalapplication of the Company. The Company opens separate bank accounts. No capital is saved in the financialcompany or settlement center account controlled by substantial shareholder or other related parties. The Companypays taxes by law independently.(V)Institution: the board, the supervisory committee and other internal institutions of the Company operateindependently. All the institutions of the Company are set according to the standards requirements applicable tolisted company and actual business natures of the Company. It has independent office location.VII. Horizontal competitionNil
                                                                  深圳市特力(集团)股份有限公司 2013 年度报告全文VIII. Appraisal and incentive mechanism for senior executivesBoard of the Company evaluated senior executives based on relevant regulations at end of this reporting period.
                                                                     深圳市特力(集团)股份有限公司 2013 年度报告全文
                                    Section IX. Internal controlI. Construction of internal controlAccording to the requirements of laws and regulations and regulatory documents including Basic Standards ofEnterprise Internal Control, Application Guidance for Enterprise Internal Control, Appraisal Guidance forEnterprise Internal Control, Guidance on Standard Operation of Listed Company on the Main board of ShenzhenStock Exchange, the Company has been constructing healthy internal control system, implementing the relevantrequirements, strengthening supervision and inspection on execution of internal control, continuing to improvegovernance level, advancing corporate standard operation and effectively preventing operation decision andmanagement risks, to ensure stable operation of the Company.During the reporting period, the Company made constant improvement and optimization as to its internal controlsystem based on specific risks pursuant to Basic Standards of Enterprise Internal Control and Guidance onInternal Control of Listed Company issued by relevant national authorities, so as to adapt to variable externalenvironment and internal management. Implementation of internal control works was organized by the boarddirectly. In particular, it formed the working mechanism for internal control works which was responsible by thechairman of the board and involved by relevant departments. The Company established appraisal team for internalcontrol. The board of the Company authorized its audit department to take charge of the detailed implementationof internal control appraisal and to make appraisal on the high-risk areas and units within the appraisal scope.Appraisal scope as to internal control covers the major business and issues of the Company and its underlyingentity, especially the following areas with high risks: investment management risk, market environment risk,merger & acquisition risk, policy risk, investment decision risk, property management risk, lawsuits risk, contractmanagement risk, capital management risk, etc.Business and issues taken into account in appraisal scope includes: capital management, purchase management,property lease management, auto sales management, auto maintenance management, fixed assets management,equity investment management, financing management, overall budget, cost expense management, contractmanagement, financial report, human resources, related transaction, etc.The internal control of the above business and issues covers major aspects of the operation management of theCompany, without material omission. Internal control appraisal works were conducted in strict accordance withthe basic standards, appraisal guidance and procedures as provided by its internal control appraisal method, withmajor procedures implemented by the internal control appraisal team. Specifically, it first made the Self-appraisalImplementation Scheme for Internal Control which determined the appraisal scope and technical standard, anddelivered the relevant test notice. Later, it formed internal control appraisal project team. Prior to implementationby such project team, it held training meeting oriented for personnel participating in the test. After that, it carriedout site works and completed appraisal draft.During the appraisal, the working team adopted various methods including individual interview, investigation,subject discussion, operation test, site inspection, and sample and comparison analysis, to collect the evidence toprove whether the design and operation of internal control was effective. Besides, it completed the appraisal draftbased on actual condition, and identified defect in internal control.According to the requirement for recognition of material defect, important defect and normal defect provided in
                                                                                  深圳市特力(集团)股份有限公司 2013 年度报告全文the Basic Standards and Appraisal Guidance, the Company, taking into account factors such as company scale,industrial nature, risk preference and risk exposure, determined the specific recognition standard for internalcontrol defect applicable to the Company. According to the above recognition standard, normal supervision andspecial supervision, there was no material defect in the internal control of the Company during the appraisal.The Company engaged Ruihua CPA to conduct independent audit on its internal control during the Period.II. Statement of the Board on responsibility for internal controlThe board of directors and all the members guarantee that there is no false statement, misleading representation ormaterial omission in the content of this report, and take several and joint responsibility as to the truthfulness,accuracy and completeness of the content.To establish healthy internal control and effectively implement the same is the responsibility of the board.III. Bases for establishment of financial report internal controlThe bases for establishment of financial report internal control are the Basic Standard of Enterprise InternalControl and its affiliated guidance. Ruihua Certified Public Accountants (LLP) issued the audit report withunqualified opinion for the year of 2013 in the Period and no material defect in the financial report of internalcontrol been found in the reporting period.IV. Evaluation report of internal control
                                Details of major defects in evaluation report that found in reporting periodNo major defects been found in internal control in reporting periodDate of evaluation report of internal
                                        2014-04-01control (full-text) disclosed
    Index of evaluation report of           Juchao website http://www.cninfo.com.cn, the website for information disclosure appointed byinternal control (full-text) disclosed Shenzhen Stock ExchangeV. Audit report of internal control√ Applicable □ Not applicable
                                      Auditing comments section in audit report of internal controlWe consider that, according to relevant regulations and “Basic Rules of Internal Control for Enterprise”, Shenzhen Tellus HoldingCo., Ltd. maintained an efficiency internal control of financial report dated 31 December 2013, in all material aspects.Date of audit report of internal
                                        2014-04-01control (full-text) disclosed
    Index of audit report of internal       Juchao website http://www.cninfo.com.cn, the website for information disclosure appointed by
    control (full-text) disclosed           Shenzhen Stock ExchangeWhether CPA carries out qualified opinion for audit report of internal control or not
    □Yes   √NoWhether the opinions are consistent in audit report of internal control carrying out by CPA and the self-evaluation report of the Board√Yes □ No
                                                                 深圳市特力(集团)股份有限公司 2013 年度报告全文VI. Establishment and enforcement of Accountability Mechanism for Major Errors in AnnualReportThe “Accountability Mechanism for Major Errors in Annual Report Disclosure under the Name of ShenzhenTellus Holding Co., Ltd.” was deliberated and approved by 3rd Meeting of 6th Session of the Board, with purposeof standard operation quality, enhancing the accuracy, true-ness, complete-ness and timely of the informationdisclosed; strengthening on accountability for person who in charge of the annual information disclosure,improving the quality and transparency of annual information that disclosed.The Company strictly follow requirement of mechanism in reporting period, and has no major errors being foundin the information disclosure.
                                                                深圳市特力(集团)股份有限公司 2013 年度报告全文
                                       Section X. Financial ReportAuditors’ Report
    Type of auditing opinion                             Standard report without qualified opinion
    Date of issue of the Auditors Report                 Mar 31 2014
    Name of the CPA                                      Ruihua Certified Public Accountants (LLP)
    Number of the Auditors Report                        瑞华审字[2014]48330004 号
    Name of the certified accountants                    Yuan Longping、Zhou Xuechun
                                             Auditors’ ReportTo the shareholders of Shenzhen Tellus Holding Company Limited:We have audited the accompanying financial statements of Shenzhen Tellus HoldingCompany Limited (―the Company‖), which comprise the consolidated and company balancesheet as at 31 December 2013, and the consolidated and company income statement, theconsolidated and company cash flow statement, the consolidated and company statementsof changes in equity for the year then ended, and notes to these financial statementsManagement’s Responsibility for the Financial StatementsThe Company‘s management is responsible for the preparation of financial statements thatgive a true and fair view. This responsibility includes: (1) Preparing financial statements inaccordance with the Accounting Standards for Business Enterprises. (2) Designing,implementing and maintaining internal control relevant to the preparation of financialstatements that are free from material misstatement, whether due to fraud or error.Auditor’s ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit.We conducted our audit in accordance with China‘s Auditing Standards for the CertifiedPublic Accountants. Those standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance whether the financial statementsare free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor‘sjudgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the entity‘s preparation of the financial statements inorder to design audit procedures that are appropriate in the circumstances, but not for thepurpose of expressing an opinion on the effectiveness of the Company‘s internal control. Anaudit also includes evaluating the appropriateness of accounting policies used and the
                                                        深圳市特力(集团)股份有限公司 2013 年度报告全文reasonableness of accounting estimates made by management, as well as evaluating theoverall presentation of the financial statements.Audit OpinionsIn our opinion, the company‘s financial statements comply with the Accounting Standardsfor Business Enterprises and present fairly, in all material respects, the financial position ofthe Company as at 31 December 2013, and the results of operations and cash flows of theCompany for the year then ended.
                                                     深圳市特力(集团)股份有限公司 2013 年度报告全文
                            Consolidated Balance Sheet
                                     As at 31 December 2013
    Prepared by:Shenzhen Tellus Holding Co.,Ltd.                                Currency: RMB Yuan
                     Item                   Note    Closing balance          Opening balanceCurrent Assets:
    Monetary funds                             Ⅶ、1          69,898,791.56              55,145,531.39Financial assets held-for-tradingNote receivables
    Account receivables                        Ⅶ、2           5,016,738.78               5,779,383.21
    Prepayments                                Ⅶ、4           8,309,574.73               8,453,261.56Premiums account receivableDividends receivable
    Other receivables                          Ⅶ、3           8,028,356.69              12,294,045.05
    Inventories                                Ⅶ、5          62,826,365.70              47,813,852.20Non-current asset due within one year
    Other current assets                       Ⅶ、6          11,644,102.02               7,495,557.97
    Total current assets                                     165,723,929.48             136,981,631.38Non-current Assets:
    Financial assets held-for-trade           Ⅶ、7           1,480,168.80               1,591,906.25
    Held-to-maturity investments              Ⅶ、8             100,000.00                 100,000.00
    Long-term receivables                     Ⅶ、9
    Long-term equity investments             Ⅶ、10        201,873,586.75             186,572,923.39
    Investment properties                    Ⅶ、11          88,422,673.91              96,666,571.61
    Fixed assets                             Ⅶ、12        149,968,663.80             156,061,636.80
    Construction in progress                 Ⅶ、13          41,642,020.40              12,977,929.03
    Materials for construction
    Disposal of fixed assets
    Bio-assets in production
    Oil and gas assets
    Intangible assets                        Ⅶ、14              33,255.04                 106,588.62
    Development expenditure
    Goodwill
    Long-term deferred expenses              Ⅶ、15             848,038.96                 803,230.14
    Deferred tax assets                      Ⅶ、16          24,566,702.71              26,709,762.78
    Other non-current assets                 Ⅶ、17          26,339,112.00              26,339,112.00
    Total non-current assets                                 535,274,222.37             507,929,660.62
    Total Assets                                             700,998,151.85             644,911,292.00
                                                                      深圳市特力(集团)股份有限公司 2013 年度报告全文
                  Consolidated Balance Sheet(Continued)
                                            As at 31 December 2013
    Prepared by:Shenzhen Tellus Holding Co.,Ltd.                                                      Currency: RMB Yuan
                           Item                           Note          Closing balance            Opening balance流动负债:
    Short-term loans                                      Ⅶ、20               110,969,952.93              93,881,155.00
    Financial liabilities held-for-trade
    Notes payable                                         Ⅶ、21                15,920,748.09
    Accounts payable                                      Ⅶ、22                22,008,010.24              23,626,617.53
    Advance from customers                                Ⅶ、23                22,087,866.51              31,857,080.49
    Employee benefits payable                             Ⅶ、24                14,408,687.62              12,581,105.70
    Taxes and due payable                                 Ⅶ、25                16,687,262.22              11,845,434.44
    Premiums payables
    Dividends payable                                     Ⅶ、26                                            1,455,297.72
    Other payables                                        Ⅶ、27               107,809,585.66              99,275,953.73
    Non-current liabilities due within one year           Ⅶ、28                12,000,000.00              12,000,000.00
    Other current liabilities
    Total current liabilities                                                     321,892,113.27             286,522,644.61Non-current liabilities:
    Long-term loans                                       Ⅶ、29               131,000,000.00             143,000,000.00
    Bonds payable
    Long-term payables                                    Ⅶ、30                13,319,681.59              12,981,872.24
    Special payables
    Accrued liabilities
    Deferred tax liabilities                              Ⅶ、16                  1,248,087.86              1,345,258.91
    Other non-current liabilities                         Ⅶ、31                29,823,013.37
    Total non-current liabilities                                                 175,390,782.82             157,327,131.15
    Total liabilities                                                             497,282,896.09             443,849,775.76Owners' equity:
    Paid-in capital                                       Ⅶ、32               220,281,600.00             220,281,600.00
    Capital reserve                                       Ⅶ、33                  8,508,531.18              8,732,694.55
    Less: treasury shares
    Special reserve
    Surplus reserve                                       Ⅶ、34                  2,952,586.32              2,952,586.32
    General risk reserve
    Undistributed profit                                  Ⅶ、35               -40,390,760.22             -47,291,479.26
    Foreign exchange translation differenceTotal owners' equity attributable to parent
                                                                              191,351,957.28             184,675,401.61company
    Minority interests                                                          12,363,298.48              16,386,114.63
    Total owners’equity                                                          203,715,255.76             201,061,516.24
    Total liabilities and owners’equity                                          700,998,151.85             644,911,292.00
    Legal representative: Zhang Ruili                Person in charge of accounting: Luo Bojun
    Chief Financial Officer:   Fu Bin           Person in charge of accounting organ:    Ke Wensheng
                                                       深圳市特力(集团)股份有限公司 2013 年度报告全文
                                       Balance Sheet
                                   As at 31 December 2013
    Prepared by:Shenzhen Tellus Holding Co.,Ltd.                             Currency: RMB Yuan
                  Item                    Note      Closing balance       Opening balanceCurrent Assets:
    Monetary funds                                          30,209,143.04             1,614,187.49Financial assets held-for-tradeNotes receivable
    Accounts receivable                      XIII、1
    Prepayments                                                 21,000.00Premiums receivableDividends receivable
    Other receivables                        XIII、2        36,330,120.01            53,031,898.91InventoriesNon-current asset due within one yearOther current assets
    Total current assets                                     66,560,263.05            54,646,086.40Non-current Assets:
    Financial assets available-for-sale                      1,480,168.80             1,591,906.25Held-to-maturity investmentsLong-term receivable
    Long-term equity investments             XIII、3       426,777,549.25           412,739,079.62
    Investment properties                                   55,919,100.96            58,884,316.80
    Fixed assets                                            18,675,995.34            18,963,289.36
    Construction in progress                                   251,308.70               235,849.10Materials for constructionDisposal of fixed assetsBio-assets in productionOil and gas assets
    Intangible assets                                           33,255.04                 77,421.87Development expenditureGoodwill
    Long-term deferred expenses                                 65,496.04               106,861.96
    Deferred tax assets                                     14,025,080.64            14,064,022.84Other non-current assets
    Total non-current assets                                517,227,954.77           506,662,747.80
    Total Assets                                            583,788,217.82           561,308,834.20
                                                                     深圳市特力(集团)股份有限公司 2013 年度报告全文
                                     Balance Sheet (Continued)
                                          As at 31 December 2013
    Prepared by:Shenzhen Tellus Holding Co.,Ltd.                                                Currency: RMB Yuan
                           Item                         Note         Closing balance         Opening balanceCurrent liabilities:
    Short-term loans                                                          67,544,160.00            49,544,160.00
    Financial liabilities held-for-trade
    Notes payable
    Accounts payable
    Advance from customers
    Employee benefits payable                                                  4,145,439.65             3,400,003.58
    Taxes and due payable                                                        403,514.95               286,821.39
    Interest payable
    Dividends payable
    Other payables                                                           287,687,112.90          268,460,296.54
    Non-current liabilities due within one year                                6,000,000.00             6,000,000.00
    Other current liabilities
    Total current liabilities                                                   365,780,227.50          327,691,281.51Non-current liabilities:
    Long-term loans                                                          101,500,000.00             4,680,000.00
    Bonds payable
    Long-term payables
    Special payables
    Accrued liabilities                                                                                87,568,728.57
    Deferred tax liabilities                                                     353,363.01               298,948.76
    Other non-current liabilities
    Total non-current liabilities                                               101,853,363.01            92,547,677.33
    Total liabilities                                                           467,633,590.51          420,238,958.84Owners' equity:
    Paid-in capital                                                          220,281,600.00          220,281,600.00
    Capital reserve                                                            5,315,107.90             5,539,271.27
    Less: treasury shares
    Special reserve
    Surplus reserves                                                           2,952,586.32             2,952,586.32
    General risk reserve
    Undistributed profit                                                    -106,319,945.78           -97,009,267.91Total owners' equity attributable to
                                                                            122,229,348.44          131,764,189.68parent company
    Total liabilities and owners' equity                                        589,862,938.95          552,003,148.52
    Legal representative: Zhang Ruili                Person in charge of accounting: Luo Bojun
    Chief Financial Officer:    Fu Bin          Person in charge of accounting organ:    Ke Wensheng
                                                                    深圳市特力(集团)股份有限公司 2013 年度报告全文
                               Consolidated Income Statement
                                    For the Year Ended 31 December 2013
    Prepared by:Shenzhen Tellus Holding Co.,Ltd.                                                    Currency: RMB Yuan
                            Item                            Note           Closing balance           Opening balance
    Ⅰ.Total operating income                                                       486,729,308.18         419,642,661.31
    Including: Operating income                              Ⅶ、36               486,729,308.18         419,642,661.31
    Ⅱ.Total operating Costs                                                        478,752,408.51         429,717,301.49
    Including: Operating costs                               Ⅶ、36               387,558,722.36         336,419,631.43
               Business tax and extra charges              Ⅶ、37                    7,351,792.51        5,922,740.31
               Selling expenses                            Ⅶ、38                21,265,233.88          20,698,948.07
               General and administrative expense          Ⅶ、39                44,227,973.01          45,435,681.23
               Financial expense                           Ⅶ、40                16,783,591.71          10,081,337.64
               Impairment losses of assets                 Ⅶ、42                    1,565,095.04       11,158,962.81
    Add: Gains from changes in fair value ("-"means loss)
            Investment income ("-" means loss)             Ⅶ、41                    8,550,869.02        4,907,776.00
         Including: Investment income from
                                                                                     7,831,419.53        4,256,541.71associates and joint venture
    Ⅲ.Operating profit ("-" means loss)                                             16,527,768.69           -5,166,864.18
      Add: Non-operating income                            Ⅶ、43                      331,465.34       14,553,855.33
      Less: Non-operating expenses                         Ⅶ、44                    2,680,027.26          150,447.76
           Including: Loss on disposal of non-
                                                           Ⅶ、44                       74,691.28          121,282.97current assets
    Ⅳ.Total profit ("-" means loss)                                                 14,179,206.77           9,236,543.39
    Less: Income tax expenses                             Ⅶ、45                11,161,230.57           8,264,624.20
    Ⅴ.Net profit ("-" means loss)                                                       3,017,976.20          971,919.19
    Net attributable to owners of parent company                                     6,900,719.04        7,146,259.35
    Minority interests                                                               -3,882,742.84       -6,174,340.16Ⅵ.Earnings per share
    Basic Earnings per share                               Ⅶ、46                            0.03                0.03
    Diluted Earnings per share                             Ⅶ、46                            0.03                0.03
    Ⅶ.Other comprehensive income                              Ⅶ、47                     -224,163.37          163,242.75
    Ⅷ.Total comprehensive income                                                        2,793,812.83        1,135,161.94
    Total comprehensive income attributable to
                                                                                     6,676,555.67        7,309,502.10owners of parent company
    Total comprehensive income attributable to
                                                                                     -3,882,742.84       -6,174,340.16minority interests
    Legal representative: Zhang Ruili             Person in charge of accounting: Luo Bojun
    Chief Financial Officer:   Fu Bin            Person in charge of accounting organ:     Ke Wensheng
                                                                          深圳市特力(集团)股份有限公司 2013 年度报告全文
                                                Income Statement
                                      For the Year Ended 31 December 2013
    Prepared by:Shenzhen Tellus Holding Co.,Ltd.                                                              Currency: RMB Yuan
                                                                              Amount for the current Amount for the prior
                             Item                               Note
                                                                                     period               period
    Ⅰ.Total operating income                                      XIII、4                     18,196,957.74         14,936,256.61
        Less:Operating cost                                    XIII、4                      4,221,693.27          4,205,086.89
              Business tax and extra charges                                                 991,328.34             836,430.39
              Selling expenses
              General and administrative expense                                           19,542,585.98         17,869,230.46
               Financial expense                                                            9,871,121.85          4,102,486.94
               Impairment losses of assets                                                   116,649.26           2,214,726.96
        Add: Gain from changes in fair value ("-" meansloss)
            Investment income ("-" means loss)                 XIII、5                      7,318,029.10          5,523,097.47
         Including: Investment income from
                                                                                            6,588,469.63          2,689,622.59associates and joint venture
    II.Operating profit ("-" means loss)                                                       -9,228,391.86         -8,768,607.56
        Add: Non-operating income                                                                                14,409,107.14
        Less:Non-operating expenses                                                           43,343.81                435.00
            Including: Loss on disposal of non-current
                                                                                              43,343.81                435.00assets
    III.Total profit ("-" means loss)                                                          -9,271,735.67          5,640,064.58
    Less: Income tax expenses                                                                38,942.20              30,061.38
    IV.Net profit ("-" means loss)                                                             -9,310,677.87          5,610,003.20
    V.Other comprehensive income                                                                 -224,163.37            163,242.75
    VI.Total comprehensive income                                                              -9,534,841.24          5,773,245.95
    Legal representative: Zhang Ruili              Person in charge of accounting: Luo Bojun
    Chief Financial Officer:   Fu Bin            Person in charge of accounting organ:   Ke Wensheng
                                                                      深圳市特力(集团)股份有限公司 2013 年度报告全文
                           Consolidated Statement of Cash Flows
                                         For the Year Ended 31 December 2013
    Prepared by:Shenzhen Tellus Holding Co.,Ltd.                                                         Currency: RMB Yuan
                                                                                         Amount for the       Amount for the
                                 Item                                   Note
                                                                                         current period        prior periodⅠ. Cash Flow from Operating Activities:
    Cash received from sales of goods or rendering of
                                                                                          537,798,772.47      490,650,957.82services
    Refund of taxes and levies
    Cash received relating to other operating activities               Ⅶ、48               8,481,935.53        8,344,217.55
    Sub-total of Cash Inflows                                                             546,280,708.00      498,995,175.37
    Cash paid for goods and services                                                     437,132,075.12      388,463,315.67
    Cash paid to and on behalf of employees                                               55,368,170.35       56,067,397.03
    Cash paid on taxes and levies                                                         24,435,686.07       22,713,007.72
    Cash paid relating to other operating activities                   Ⅶ、48              31,974,411.26       39,507,837.42
    Sub-total of Cash Outflows                                                            548,910,342.80      506,751,557.84
    Net Cash Flows from Operating Activities                                               -2,629,634.80       -7,756,382.47Ⅱ. Cash Flows from Investing Activities:
    Cash received from return of investments
    Cash received investing income                                                            3,179,559.47     4,255,528.29
    Net cash received from disposal of fixed assets,
                                                                                              34,900,418.00    27,378,562.00
    intangible assets and other long assets
    Net cash flows from disposal subsidiary and otheroperating unite
    Other cash received relating to investing activities
    Sub-total of Cash Inflows                                                                38,079,977.47    31,634,090.29
    Cash paid to acquire fixed assets, intangible assets
                                                                                              31,164,527.37    30,822,848.76and other long assets
    Cash paid on investments                                                                 10,087,147.05    33,500,000.00
    Net cash paid on obtain subsidiary and otheroperating unite
    Cash paid on other investing activities
    Sub-total of Cash Outflows                                                                41,251,674.42    64,322,848.76
    Net Cash Flows from Investing Activities                                                  -3,171,696.95   -32,688,758.47Ⅲ. Cash flow from Financing Activities
    Cash received from investments
    Including: Cash received from investments byminority interests of subsidiaries
    Cash received from borrowing                                                         134,075,373.53      378,400,000.00
    Cash received from issuing bonds
    Cash received from other financing activities                                         28,008,026.45
    Sub-total of Cash Inflows                                                            162,083,399.98      378,400,000.00
    Cash repayments on borrowed amounts                                                  128,857,842.60      322,611,233.00
    Cash payments for distribution of dividends or profits                                11,962,773.54       15,575,489.98
    Including: Dividends or profit paid to minority
                                                                                               1,455,297.72interests of subsidiaries
    Cash payments on other financing activities                       Ⅶ、48               7,436,543.46          547,350.00
    Sub-total of cash Outflows                                                            148,257,159.60      338,734,072.98
    Net cash flows from financing activities                                               13,826,240.38       39,665,927.02
    Ⅳ. Effect of foreign exchange rate on cash                                                    -3,991.92           -1,828.15
    Ⅴ. Net increase in cash and cash equivalents                                               8,020,916.71         -781,042.07
    Add: cash equivalents at the beginning of the period                                  55,145,531.39       55,926,573.46
    Ⅵ. Cash equivalents at the end of the period                                              63,166,448.10       55,145,531.39
    Legal representative:      Zhang Ruili          Person in charge of accounting:   Luo Bojun
    Chief Financial Officer:    Fu Bin             Person in charge of accounting organ:   Ke Wensheng
                                                                         深圳市特力(集团)股份有限公司 2013 年度报告全文
                                         Cash Flow Statement
                                     For the Year Ended 31 December 2013
    Prepared by:Shenzhen Tellus Holding Co.,Ltd.                                                         Currency: RMB Yuan
                                                                               Amount for the        Amount for the prior
                              Item                              Note
                                                                               current period             periodⅠ. Cash Flow from Operating Activities:
    Cash received from sales of goods or rendering of
                                                                                     18,196,957.74           14,936,256.61services
    Refund of taxes and levies
    Cash received relating to other operating activities                             38,066,387.96           16,747,415.69
    Sub-total of Cash Inflows                                                        56,263,345.70           31,683,672.30
    Cash paid for goods and services
    Cash paid to and on behalf of employees                                         11,992,805.70           10,566,015.15
    Cash paid on taxes and levies                                                    3,429,364.05            3,013,316.53
    Cash paid relating to other operating activities                                 10,992,577.29           14,029,304.76
    Sub-total of Cash Outflows                                                      26,414,747.04           27,608,636.44
    Net Cash Flows from Operating Activities                                        29,848,598.66            4,075,035.86Ⅱ. Cash Flows from Investing Activities:
    Cash received from return of investments
    Cash received investing income                                                   3,179,559.47            4,255,528.29
    Net cash received from disposal of fixed assets,
                                                                                                                    120.00
    intangible assets and other long assets
    Other cash received relating to investing activities
    Sub-total of Cash Inflows                                                        3,179,559.47            4,255,648.29
    Cash paid to acquire fixed assets, intangible assets
                                                                                        827,551.74              673,083.78and other long assets
    Cash paid on investments                                                        10,087,147.05           33,500,000.00
    Cash paid on other investing activities
    Sub-total of cash outflows                                                      10,914,698.79            34,173,083.78
    Net Cash Flows from Investing Activities                                        -7,735,139.32           -29,917,435.49Ⅲ. Cash flow from Financing Activities
    Cash received from investments
    Cash received from borrowing                                                    58,000,000.00          268,000,000.00
    Cash received from issuing bonds
    Cash received from other financing activities
    Sub-total of cash inflows                                                       58,000,000.00          268,000,000.00
    Cash repayments on borrowed amounts                                             46,000,000.00          229,260,000.00
    Cash payments for distribution of dividends or
                                                                                      4,886,560.37           11,167,847.06profits
    Cash payments on other financing activities                                        631,800.00              180,000.00
    Sub-total of cash Outflows                                                      51,518,360.37          240,607,847.06
    Net cash flows from financing activities                                         6,481,639.63           27,392,152.94
    Ⅳ. Effect of foreign exchange rate on cash                                                -143.42                   -8.68
    Ⅴ. Net increase in cash and cash equivalents                                        28,594,955.55            1,549,744.63
    Add: cash equivalents at the beginning of the period                              1,614,187.49               64,442.86
    Ⅵ. Cash equivalents at the end of the period                                        30,209,143.04            1,614,187.49
    Legal representative: Zhang Ruili           Person in charge of accounting: Luo Bojun
    Chief Financial Officer:   Fu Bin          Person in charge of accounting organ:   Ke Wensheng深圳市特力(集团)股份有限公司 2013 年度报告全文
                                                                                                                                                                                                                                                深圳市特力(集团)股份有限公司 2013 年度报告全文
                                                                                                                     CONSOLIDATED STATEMENT OF CHANGE IN OWNER'S EQUITY
                                                                                                                                                           For the Year Ended 31 December 2013
    Prepared by:Shenzhen Tellus Holding Co.,Ltd.                                                                                                                                                                                                                                                                                   Currency: RMB Yuan
                                                                                                           Amount for the current year                                                                                                                        Amount for the prior year
                                                                                    Attribute to the equity of parent company                                                                                                        Attribute to the equity of parent company
                     Item
                                                                                                                                                                   Minority       Total owners'                                                                                                                     Minority         Total owners'
                                                                                          Less:                                                                                                    Paid-in capital                    Less:
                                                   Paid-in capital (or   Capital                 Special                        General   Undistributed            interests         equity                           Capital                  Special     Surplus       General                                    interests           equity
                                                                                        Treasury           Surplus reserve                              Others                                       (or Share                      Treasury                                       Undistributed profit    Others
                                                    Share capital)       reserve                 reserve                        reserve      profit                                                                   reserve                  reserve     reserve       reserve
                                                                                         shares                                                                                                       capital)                       shares
    1.Balance at the End of Last Period                    220,281,600.00    8,732,694.55                           2,952,586.32              -47,291,479.26          16,386,114.63   201,061,516.24    220,281,600.00   8,569,451.80                         2,952,586.32                    -54,437,738.61            24,015,752.51     201,381,652.02
    Add: Changes of accounting policies
           Prior year adjustments
           Others
    2. Balance at the Beginning of the Year                220,281,600.00    8,732,694.55                           2,952,586.32              -47,291,479.26          16,386,114.63   201,061,516.24    220,281,600.00   8,569,451.80                         2,952,586.32                    -54,437,738.61            24,015,752.51     201,381,652.023. Increase/Decrease movements in
                                                                          -224,163.37                                                       6,900,719.04          -4,022,816.15     2,653,739.52                      163,242.75                                                           7,146,259.35             -7,629,637.88         -320,135.78this Year ("-" means loss)
    (I) Net Profit                                                                                                                              6,900,719.04          -3,882,742.84     3,017,976.20                                                                                           7,146,259.35             -6,174,340.16          971,919.19
    (II) Gain/Loss to Owners' Equity Directly                                 -224,163.37                                                                                                -224,163.37                      163,242.75                                                                                                           163,242.75
    Subtotal of (I)and (II)                                                   -224,163.37                                                       6,900,719.04          -3,882,742.84     2,793,812.83                      163,242.75                                                           7,146,259.35             -6,174,340.16        1,135,161.94(III) Capital Injected and Reduced by Ownersa. Capital injected by ownersb. Payment for shares included in owners' equityc. Others
    (IV) Profit Distribution                                                                                                                                                                                                                                                                                            -1,455,297.72        -1,455,297.72a. Withdrawal surplus reserveb. Provisions withdrawn for general risk
    c. Distribution to owners (or shareholders)                                                                                                                                                                                                                                                                         -1,455,297.72        -1,455,297.72d. Others(V) Internal transfers of owners' equitya. Capitalisation of Additional paid-incapital; (or share capital)b. Capitalization of surplus reserve (orshare capital)c. Making up losses of surplusreserved. Others(VI) Special Reservea. Withdrawal of special reserveb. Use of special reserve
    (VII) Others                                                                                                                                                        -140,073.31      -140,073.31
    4. Balance at the end of the period                    220,281,600.00    8,508,531.18                           2,952,586.32              -40,390,760.22          12,363,298.48   203,715,255.76    220,281,600.00   8,732,694.55                         2,952,586.32                    -47,291,479.26            16,386,114.63     201,061,516.24
    Legal representative:Zhang Ruili                     Person in charge of accounting:Luo Bojun     Chief Financial Officer: Fu Bin          Person in charge of accounting organ:Ke Wensheng
                                                                                                                                                                                                       深圳市特力(集团)股份有限公司 2013 年度报告全文
                                                                                                   STATEMENT OF CHANGE IN OWNER'S EQUITY
                                                                                                                       For the Year Ended 31 December 2013
    Prepared by:Shenzhen Tellus Holding Co.,Ltd.                                                                                                                                                                                                                      Currency: RMB Yuan
                                                                                        Amount for the current year                                                                                               Amount for the prior year
                  Item                      Paid-in capital                    Less:                                                                                                                     Less:
                                                                Capital                 Special       Surplus      General      Undistributed     Total owners'      Paid-in capital    Capital                   Special     Surplus       Undistrib   Total owners'     Total owners'
                                              (or Share                      Treasury                                                                                                                  Treasury
                                                               reserve                  reserve      reserve       reserve         profit            equity        (or Share capital)   reserve                   reserve     reserve         uted         equity            equity
                                               capital)                       shares                                                                                                                    shares
                                                                                                                                                                                                                                             profit
    1.Balance at the End of Last Period         220,281,600.00    5,539,271.27                          2,952,586.32                 -97,009,267.91   131,764,189.68     220,281,600.00     5,376,028.52                         2,952,586.32               -102,619,271.11   125,990,943.73
    Add: Changes of accounting policies
         Prior year adjustments
         Others2. Balance at the Beginning of the
                                            220,281,600.00    5,539,271.27                          2,952,586.32                 -97,009,267.91   131,764,189.68     220,281,600.00     5,376,028.52                         2,952,586.32               -102,619,271.11   125,990,943.73Year3. Increase/Decrease movements in
                                                              -224,163.37                                                         -9,310,677.87    -9,534,841.24                         163,242.75                                                        5,610,003.20     5,773,245.95this Year ("-" means loss)
    (I) Net Profit                                                                                                                    -9,310,677.87    -9,310,677.87                                                                                           5,610,003.20     5,610,003.20
    (II) Other comprehensive income                               -224,163.37                                                                            -224,163.37                         163,242.75                                                                            163,242.75
    Subtotal of (I)and (II)                                       -224,163.37                                                         -9,310,677.87    -9,534,841.24                         163,242.75                                                        5,610,003.20     5,773,245.95(III) Capital Injected and Reducedby Ownersa. Capital injected by ownersb. Payment for shares included inowners' equityc. Others(IV) Profit distributiona. Withdrawal surplus reserveb. Provisions withdrawn for generalriskc. Distribution to owners (orshareholders)d. Others(V) Internal transfers of owners'equitya. Capitalisation of Additional paid-incapital; (or share capital)b. Capitalisation of surplus reserve (orshare capital)c. Making up losses of surplusreserved. Others(VI) Special Reservea. Withdrawal of current periodb. Use of special reserve(VII) Others
    4. Balance at the end of the period         220,281,600.00    5,315,107.90                          2,952,586.32                -106,319,945.78   122,229,348.44     220,281,600.00     5,539,271.27                         2,952,586.32                -97,009,267.91    131,764,189.68
    Legal representative:Zhang Ruili             Person in charge of accounting:Luo Bojun         Chief Financial Officer: Fu Bin            Person in charge of accounting organ:Ke Wensheng
    SHENZHEN TELLUS HOLDING CO., LTD.                 Notes to the financial statements for the year ended 31 December 2013
                             SHENZHEN TELLUS HOLDING CO., LTD.
                                         Notes to Financial Statements
                         (For the Year Ended 31 December, 2013      Expressed in RMB Yuan)Ⅰ、 Corporation profile1.1 Company’s historyShenzhen Tellus Holding Company Limited (―the Company‖) was developed from theShenzhen Tellus Machinery Co.,Ltd., which established on 11 October, 1986. On 2ndJanuary, 1992, with the approval of Shenzhen Municipal People‘s Government ―shen fuban fu (1992), No. 1850‖, Shenzhen Tellus Machinery Co.,Ltd. reorganized to a publiclimited company and renamed to Shenzhen Tellus Machinery Holding Company Limited.On 15 March 1993, with the approval of Bank of China Shenzhen branch ―Shen Ren YinFu Zi (1993) No.92‖, the Company issued registered shares A 259.8 million shares, B
    200 million shares with par value per share of 1 yuan.                     On 30 June 1994, the Companychanged name to Shenzhen Tellus Holding Company Limited with the approval ofShenzhen administrative bureau for industry and commerce .Number of businesslicense for enterprise legal person: 440301103017750. The headquarters of ShenzhenTellus Holding Company Limited located at Tellus Building level 3, Shuibei second Road,Luohu, Shenzhen City, Guangdong Province.The company and its subsidiaries provided automobile overall services, includingautomobile retailing, inspection and maintenance, production of inspection equipment,property lease and property management service, etc. The group belongs to wholesaleindustry of resource, materials, and electronic equipment.The capital structure of the Company at listing date:
                                   Category                              Amount (share)               Ratio(%)1. Non-tradable shares
    Include: State shares                                                       120,900,000                       72.45
    Sub-total of non-tradable shares                                                 120,900,000                       72.452. Tradable shares
      -A                                                                          25,980,000                       15.57
      -B                                                                          20,000,000                       11.98
    Sub-total tradable shares                                                    45,980,000                       27.55
    SHENZHEN TELLUS HOLDING CO., LTD.         Notes to the financial statements for the year ended 31 December 2013
                                Category                         Amount (share)               Ratio(%)
                                Total                                    166,880,000                     100.00Change of capital structure after established:(1)Issue bonus shares in 1993According to the decision made by general meeting of shareholders in 1993, thecompany distributed a 2 for 10 bonus shares with cash dividend of RMB 0.5 , the capitalincreased from 1,668.8 million shares to 2,002.56 million shares.On 22 April 1994,the Shenzhen Stock Management Office agreed about plan ofdistributing bonus . After plan, the company‘s capital structure changed as follows:
                                Category                        Amount(share)               Ratio(%)
    State - owned shares                                                   145,080,000                         72.45
    Public shares                                                           31,176,000                         15.57
    RMB special stock(B shares)                                           24,000,000                         11.98
                                Total                                  200,256,000                      100.00(2)Issue bonus shares and increase capital in 1994
    On 28 May 1995, the Group shareholder meeting agreed about plan of distributingbonus and increasing capital. On the basis of 2,002.56 million shares in the end of 1994,the Group distributed 0.5 of 10 shares, and give RMB 0.5 from every increasing 0.5share capital. After the Group‘s share capital increased to 2,202.816 million shares.After plan, the company‘s capital structure changed as follows:
                                Category                        Amount(share)               Ratio(%)
    State - owned shares                                                     159,588,000                        66.22
    Public shares                                                             34,293,600                        21.80
    RMB special stock(B shares)                                             26,400,000                        11.98
                                Total                                    220,281,600                       100.00(3)Majority shareholder change in 1997On 31st March 1997, with the approval of Shenzhen Municipal People‘s Government―shen fu han (1997), No. 19‖ and China Securities Regulatory Commission ―zheng jianhan shang (1997), No. 5‖, Shenzhen Investment Administrative Company transferred its159,588,000 shares to Shenzhen Te Fa (Group) Company Limited (hereinafter referredto as ―the Te Fa Group‖). The shares transferred represent 72.45% of the total issued
    SHENZHEN TELLUS HOLDING CO., LTD.         Notes to the financial statements for the year ended 31 December 2013shares of the Company.(4)The reform of listing non-tradable shares in 2006In December 2005, shenzhen, the State-owned Assets Supervision and AdministrationCommission agreed about the plan of reforming non-tradable shares.On 4th January 2006, the Te Fa Group gave 13,717,440 shares to the holders of tradableshares of the company in the A share market. After the split-share reform was completed,The Te Fa Group holds 66.22% of the shares capital of the Company.After the split-share reform, the company‘s capital structure changed as follows:
                                Category                        Amount(share)               Ratio(%)
    State - owned shares                                                     145,870,560                        66.22
    Public shares                                                             48,011,040                        21.79
    RMB special stock(B shares)                                             26,400,000                        11.98
                                Total                                    220,281,600                       100.00Till the end of 2013, the Company had issued 2,202.816 million shares, details in Note7.32.The Company‘s business scope includes induatrial projects, operating real estate undergaining land-use right, mainland commerce, goods and materials business ,(Government monopolistic goods and materials are not included.),leasing and managingown property, import and export business of internal production materials andaccessories.Import and export business comply with the approval certificate (Shen MaoGuan Zheng Zi No.098).The Group‘s mother company is Shenzhen Te Fa (Group) Company Limited, and itsultimate controller is shenzhen the State-owned Assets Supervision and AdministrationCommission.The financial statements of the Company are authorized to be issued to the public on31st March, 2014 by the Board of Directors.
    Ⅱ、 Basis of PreparationThe financial statements of the Company have been prepared on the basis of goingconcern in conformity with Chinese Accounting Standards for Business Enterprises andthe Accounting Systems for Business Enterprises issued by the Ministry of Finance ofPeople‘s Republic of China in February 2006, and Accounting Standards (order No.38 ofthe Ministry of Finance) and Compilation Rules for Information Disclosure by Companies
    SHENZHEN TELLUS HOLDING CO., LTD.     Notes to the financial statements for the year ended 31 December 2013Offering Securities to the Public No.15—General Provisions on Financial Reports (2010Revision) issued by the China Securities Regulatory Commission (CSRC).According to the relevant accounting regulations in Chinese Accounting Standards forBusiness Enterprises, the Group has adopted the accrual basis of accounting. Exceptfor certain financial instruments which are measured by at fair value, the Group adoptsthe historical cost as the principle of measurement in the financial statements. Whereassets are impaired, provisions for asset impairment are made in accordance withrelevant requirements.Ⅲ、 Statement of Compliance with Enterprise Accounting StandardsThe financial statements of the Group comply are recognized and measured inaccordance with the regulations in the Chinese Accounting Standards for BusinessEnterprises and they give a true and fair view of the financial position, business resultand cash flow of the Group as of 31 December 2013. In addition, the financialstatements of the Company and the Group comply, in all material respects, with therevised disclosing requirements for financial statements and the notes CompilationRules for Information Disclosure by Companies Offering Securities to the PublicNo.15—General Provisions on Financial Reports (2010 Revision)‘ issued by ChinaSecurities Regulatory Commission (CSRC) in 2010.Ⅳ、 Important Accounting Principles and Accounting Estimates1、 Accounting periodThe accounting period of the Group is classified as annual period and interim period.Interim period refers to the reporting period shorter than a complete annual period. Theaccounting period of the Group is the calendar year from January 1 to December 31.2、 Monetary UnitRenminbi (RMB) is the currency of the primary economic environment in which theGroup and its domestic subsidiaries operate. Therefore, the Group and its domesticsubsidiaries choose RMB as their functional currency. The Group adopts RMB toprepare its functional statements.3、Basis of accountingA business combination is a transaction or event that brings together two or moreseparate entities into one reporting entity. Business combinations are classified intobusiness combinations involving enterprises under common control and businesscombinations not involving enterprises under common control.
    SHENZHEN TELLUS HOLDING CO., LTD.         Notes to the financial statements for the year ended 31 December 2013(1)Business combination involving entities under common controlA business combination involving enterprises under common control is a businesscombination in which all of the combining enterprises are ultimately controlled by thesame party or parties both before and after the combination, and that control is nottransitory. For a business combination involving enterprises under common control, theparty that, on the combination date, obtains control of another enterprise participating inthe combination is the absorbing party, while that other enterprise participating in thecombination is a party being absorbed. Combination date is the date on which theabsorbing party effectively obtains control of the party being absorbed.The assets and liabilities obtained are measured at the carrying amounts as recorded bythe enterprise being combined at the combination date. The difference between thecarrying amount of the net assets obtained and the carrying amount of considerationpaid for the combination (or the total face value of shares issued) is adjusted to thecapital premium (or share premium) in the capital reserve. If the balance of the capitalpremium (or share premium) is insufficient, any excess is adjusted to retained earnings.The cost of a combination incurred by the absorbing party includes any costs directlyattributable to the combination shall be recognized as an expense through profit or lossfor the current period when incurred.(2)Business combination involving entities not under common controlA business combination involving enterprises not under common control is a businesscombination in which all of the combining enterprises are not ultimately controlled by thesame party or parties both before and after the business combination. For a businesscombination not involving enterprises under common control, the party that, on theacquisition date, obtains control of another enterprise participating in the combination isthe acquirer, while that other enterprise participating in the combination is the acquiree.Acquisition date is the date on which the acquirer effectively obtains control of theacquiree.For a business combination not involving enterprise under common control, thecombination cost including the sum of fair value, at the acquisition date, of the assetsgiven, liabilities incurred or assumed, and equity securities issued by the acquirer. Theintermediary expenses incurred by the acquirer in respect of auditing, legal services,valuation and consultancy services etc and other associated administrative expensesattributable to the business combination are recognized in profit or loss when they areincurred. The transaction cost arose from issuing of equity securities or liability securitiesshall be initially recognized as equity securities or liability securities.
    SHENZHEN TELLUS HOLDING CO., LTD.          Notes to the financial statements for the year ended 31 December 2013The contingent consideration related to the combination shall be booked as combinationcost at the fair value at the acquisition date. If, within the 12 months after acquisition,additional information can prove the existence of related information at acquisition dateand the contingent consideration need to be adjusted, goodwill can be offset. For abusiness combination achieved in stages that involves multiple exchange transactions,the equity interest in the acquiree previously held before the acquisition datere-assessed at the fair value at the acquisition date, with any difference between its fairvalue and its carrying amount is recorded as investment income. The othercomprehensive income of the acquiree before the acquisition date relating to thepreviously held interest in the acquiree is transferred to investment income. Combinationcost is the aggregate of the carrying amount of the equity interest held in the acquireeprior to the acquisition date and the fair value of the cost of the additional investment atthe acquisition date.Combination cost of the acquirer‘s interest and identifiable net assets of the acquireracquired through the business combination shall be measured by the fair value at theacquisition date. Where the cost of combination exceeds the acquirer‘s interest in thefair value of the acquiree‘s identifiable net assets, the difference shall be recognized asgoodwill. Where the cost of combination is less than the acquirer‘s interest in the fairvalue of the acquiree‘s identifiable net assets, the difference shall be accounted foraccording to the following requirements: (i) the acquirer shall reassess the measurementof the fair values of the acquiree‘s identifiable assets, liabilities and contingent liabilitiesand measurement of the cost of combination; (ii) if after that reassessment, the cost ofcombination is still less than the acquirer‘s interest in the fair values of the acquiree‘sidentifiable net assets, the acquirer shall recognize the remaining difference immediatelyin profit or loss for the current period.Where the temporary difference obtained by the acquirer was not recognized due toinconformity with the conditions applied for recognition of deferred income tax, if, withinthe 12 months after acquisition, additional information can prove the existence of relatedinformation at acquisition date and the expected economic benefits on the acquisitiondate arose from deductible temporary difference by the acquiree can be achieved,relevant income tax assets can be recognized, and goodwill offset. If the goodwill is notsufficient, the difference shall be recognized as profit of the current period.Apart from above, the differences shall be taken into profit or loss of the current period ifthe recognition of deferred income tax assets is related to the combination.4、Preparation of consolidated financial statements
    SHENZHEN TELLUS HOLDING CO., LTD.       Notes to the financial statements for the year ended 31 December 2013(1)The scope of consolidated financial statementsThe scope of consolidation in the consolidated financial statements is determined on thebasis of control. Control is the power to govern the financial and operating policies of anenterprise so as to obtain benefits from its operating activities. The scope ofconsolidation includes the Group and all of the subsidiaries. Subsidiary is an enterpriseor entity under the control of the Group.(2)Preparation of the consolidated financial statementsThe subsidiary of the Group is included in the consolidated financial statements from thedate when the control over the net assets and business decisions of the subsidiary iseffectively obtained, and excluded from the date when the control ceases. For asubsidiary disposed of by the Group, the operating results and cash flows before thedate of disposal (the date when control is lost) are included in the consolidated incomestatement and consolidated statement of cash flows, as appropriate. For a subsidiarydisposed during the period, no adjustment is made to the opening balance of theconsolidated financial statements.For a subsidiary acquired through a business combination not under common control,the operating results and cash flows from the acquisition (the date when the control isobtained) are included in the consolidated income statement and consolidated statementof cash flows, as appropriated; no adjustment is made to the opening balance andcomparative figures in the consolidated financial statements. Where a subsidiary wasacquired during the reporting period, through a business combination involvingenterprises under common control, the financial statements of the subsidiary areincluded in the consolidated financial statements. The results of operations and cashflow are included in the consolidated balance sheet and the consolidated incomestatement, respectively, based on their carrying amounts, from the date that commoncontrol was established, and the opening balances and the comparative figures of theconsolidated financial statements are restated.When the accounting period or accounting policies of a subsidiary are different fromthose of the Group, the Group makes necessary adjustments to the financial statementsof the subsidiary based on the Group‘s own accounting period or accounting policies.Where a subsidiary was acquired during the reporting period through a businesscombination not under common control, the financial statements was re-conciliated onthe basis of the fair value of identifiable net assets at the date of acquisition. Intra-groupbalances and transactions, and any unrealized profit or loss arising from intra-grouptransactions, are eliminated in preparing the consolidated financial statements.
    SHENZHEN TELLUS HOLDING CO., LTD.         Notes to the financial statements for the year ended 31 December 2013Minority interest and the portion in the net profit or loss not attributable to the Group arepresented separately in the consolidated balance sheet within shareholders‘ equity andnet profit. Net profit or loss attributable to minority shareholders in the subsidiaries ispresented separately as minority interest in the consolidated income statement belowthe net profit line item. When the amount of loss for the current period attributable to theminority shareholders of a subsidiary exceeds the minority shareholders‘ portion of theopening balance of owners‘ equity of the subsidiary, the excess is allocated against theminority interests.When the Group loses control of a subsidiary due to the disposal of a portion of an equityinvestment or other reasons, the remaining equity investment is re-measured at its fairvalue at the date when control is lost. The difference between 1) the total amount ofconsideration received from the transaction that resulted in the loss of control and thefair value of the remaining equity investment and 2) the carrying amounts of the interestin the former subsidiary‘s net assets immediately before the loss of the control isrecognized as investment income for the current period when control is lost. The amountrecognized in other comprehensive income in relation to the former subsidiary‘s equityinvestment is reclassified as investment income for the current period when control islost. The retained interest is subsequently measured according to the rules stipulated inthe ―Chinese Accounting Standards for Business Enterprises No.2—Long-term equity
    investment‖     or    ―Chinese     Accounting       Standards        for     Business         EnterprisesNo.22—Determination and measurement of financial instruments‖ . Details in Note 4. 7―Financial instruments‖ or Note 4.10 ‖Long-term equity investments ‖.5、Cash and Cash equivalentCash and cash equivalents of the Group include cash on hand, ready usable depositsand investments having short holding term (normally will be due within three monthsfrom the day of purchase), with strong liquidity and easy to be exchanged into certainamount of cash that can be measured reliably and have low risks of change.6、Foreign exchange(1)Translation in foreign exchange transactionsThe foreign currency transactions are recorded, on initial recognition in the functionalcurrency, by applying the spot exchange rate on the date of the transaction (anexchange rate that approximates the actual spot exchange rate on the date oftransaction). The exchange of foreign currency and transactions related to the foreignexchange are translated at the spot exchange rate.(2)Translation of monetary foreign currency and non-monetary foreign currency
    SHENZHEN TELLUS HOLDING CO., LTD.       Notes to the financial statements for the year ended 31 December 2013At the balance sheet date, foreign currency monetary items are translated using the spotexchange rate at the balance sheet date. All the exchange differences thus resulted aretaken to profit or loss, except for ①those relating to foreign currency borrowingsspecifically for construction and acquisition of qualifying assets, which are capitalized inaccordance with the principle of capitalization of borrowing costs. ②The exchangedifference from changes of other account balance of foreign currency monetary itemsavailable-for-trade is recorded into profit or loss except for amortized cost.Non-monetary foreign currency items measured at historical cost shall still be translatedat the spot exchange rate prevailing on the transaction date, and the amountdenominated in the functional currency is not changed. Non-monetary foreign currencyitems measured at fair value are translated at the spot exchange rate prevailing at thedate when the fair values are determined. The exchange difference thus resulted arerecognized in profit or loss for the current period or as capital reserve.7、Financial instruments(1)Determination of financial assets and liabilities‘ fair valueFair value is the amount for which an asset could be exchanged, or a liability settled,between knowledgeable, willing parties in an arm‘s length transaction. For a financialinstrument which has an active market, the Group uses quoted price in the active marketto establish its fair value. The quoted price in the active market refers to the price thatcan be regularly obtained from exchange market, agencies, industry associations,pricing authorities; it represents the fair market trading price in the actual transaction.For a financial instrument which does not have an active market, the Group establishesfair value by using a valuation technique. Valuation techniques include using recentarm‘s length market transactions between knowledgeable, willing parties, reference tothe current fair value of another instrument that is substantially the same, discountedcash flow analysis and option pricing models.(2)Classification, recognition and measurement of financial assetsAll regular way purchases or sales of financial assets are recognized and derecognizedon a trade date basis. On initial recognition, the Group‘s financial assets are classifiedinto one of the four categories, including financial assets at fair value though profit orloss, held-to maturity investments, loans and receivables and available-for-tradefinancial assets. A financial asset is recognized initially at fair value. In the case offinancial assets at fair value through profit or loss, relevant transaction costs areimmediately charged to the profit and loss of the current period; transaction costsrelating to financial assets of other categories are included in the amount initially
    SHENZHEN TELLUS HOLDING CO., LTD.         Notes to the financial statements for the year ended 31 December 2013recognized.① Financial assets at fair value through profit or loss:Including financial assets held-for-trade and financial assets designated at fair valuethrough profit or loss.Financial asset held-for-trade is the financial asset that meets one of the followingconditions:
        A. the financial asset is acquired for the purpose of selling it in a short term;
       B. the financial asset is a part of a portfolio of identifiable financial instruments thatare collectively managed, and there is objective evidence indicating that the enterpriserecently manages this portfolio for the purpose of short-term profits;
    C. the financial asset is a derivative, except for a derivative that is designated andeffective hedging instrument, or a financial guarantee contract, or a derivative that islinked to and must be settled by delivery of an unquoted equity instrument (without aquoted price from an active market) whose fair value cannot be reliably measured. Forsuch kind of financial assets, fair values are adopted for subsequent measurement.Financial asset is designated on initial recognition as at fair value through profit or lossonly when it meets one of the following conditions:
    A. the designation eliminates or significantly reduces the inconsistency in themeasurement or recognition of relevant gains or losses that would otherwise arise frommeasuring the financial instruments on different bases.
    B.      a group of financial instruments is managed and its performance is evaluated ona fair value basis, and is reported to the enterprise‘s key management personnels.Formal documentation regarding risk management or investment strategy has prepared.Financial assets at fair value through profit or loss are subsequently measured at the fairvalue. Any gains or losses arising from changes in the fair value and any dividends orinterest income earned on the financial assets are recognized in the profit or loss.② Investment held-to maturityHeld-to-maturity investments are non-derivative financial assets with fixed ordeterminable payments and fixed maturity that an entity has the positive intention andability to hold to maturity. Such kind of financial assets are subsequently measured atamortized cost using the effective interest method. Gains or losses arising fromderecognition, impairment or amortization are recognized in profit or loss for the currentperiod.Effective interest rate is the rate that exactly discounted estimated future cash flows
    SHENZHEN TELLUS HOLDING CO., LTD.        Notes to the financial statements for the year ended 31 December 2013through the expected life of the financial asset or financial liability or, where appropriate,a shorter period to the net carrying amount of the financial asset or financial liability.When calculating the effective interest rate, the Group shall estimate future cash flowconsidering all contractual terms of the financial asset or financial liability withoutconsidering future credit losses, and also consider all fees paid or received between theparties to the contract giving rise to the financial asset and financial liability that are anintegral part of the effective interest rate, transaction costs, and premiums or discounts,etc.③ Loans and receivablesLoans and receivables are non-derivative financial assets with fixed determinablepayment that are not quoted in an active market. Financial assets classified as loans andreceivables by the Group include note receivables, account receivables, interestreceivable dividends receivable and other receivables.Loans and receivables are subsequently measured at amortized cost using the effectiveinterest method. Gain or loss arising from derecognition, impairment or amortization isrecognized in profit or loss.④ Financial assets available-for-tradeFinancial assets available-for-trade include non-derivative financial assets that aredesignated on initial recognition as available for trade, and financial assets that are notclassified as financial assets at fair value through profit or loss, loans and receivables orinvestment held-to-maturity.Financial assets available-for-trade are subsequently measured at fair value, and gainsor losses arising from changes in the fair value are recognized as other comprehensiveincome and included in the capital reserve, except that impairment losses and exchangedifferences related to amortized cost of monetary financial assets denominated inforeign currencies are recognized in profit or loss, until the financial assets arederecognized, at which time the gains or losses are released and recognized in profit orloss.Interests obtained and dividends declared by the investee during the period in which thefinancial assets available-for-trade are held, are recognized in investment gains.(3)Impairment of financial assetsThe Group assesses at the balance sheet date the carrying amount of every financialasset except for the financial assets that measured by the fair value. If there is objectiveevidence indicating a financial asset may be impaired, a provision is provided for the
    SHENZHEN TELLUS HOLDING CO., LTD.         Notes to the financial statements for the year ended 31 December 2013impairment.The Group makes an impairment test for a financial asset that is individually significant.For a financial asset that is not individually significant, it is included in a group of financialassets with similar credit risk characteristics and collectively assessed for impairment [orindividually assessed for impairment]. If no objective evidence of impairment incurs foran individually assessed financial asset (whether the financial asset is individuallysignificant or not individually significant), it is included in a group of financial assets withsimilar credit risk characteristics and collectively assessed for impairment. Assets forwhich an impairment loss is individually recognized is not included in a group of financialassets with similar credit risk characteristics and collectively assessed for impairment.① Impairment on held-to maturity investment, loans and receivablesThe financial assets measured by cost or amortized cost write down their carrying valueby the estimated present value of future cash flow. The difference is recorded asimpairment loss. If there is objective evidence to indicate the recovery of value offinancial assets after impairment, and it is related with subsequent event afterrecognition of loss, the impairment loss recorded originally can be reversed. Thecarrying value of financial assets after impairment loss reversed shall not exceed theamortized cost of the financial assets without provisions of impairment loss on thereserving date.② Impairment loss on available-for-trade financial assetsWhen decision is made with all related factors on whether the fall of fair value investmentof an equity instrument available-for-trade is significant or non-transient, it indicatesimpairment of such equity instrument investment, in which, ―significant‖ means over 20%of fall in fair value and ―non-transient‖ means over 12 months of subsequent fall.When an available-for-trade financial asset is impaired, the cumulative loss arising fromdeclining in fair value that had been recognized in capital reserve shall be removed andrecognized in profit or loss. The amount of the cumulative loss that is removed shall bedifference between the acquisition cost with deduction of recoverable amount lessamortized cost, current fair value and any impairment loss on that financial assetpreviously recognized in profit or loss.If, after an impairment loss has been recognized, there is objective evidence that thevalue of the financial asset is recovered, and it is objectively related to an eventoccurring after the impairment loss was recognized, the initial impairment loss can bereversed and the reserved impairment loss on available-for-trade equity instrument is
    SHENZHEN TELLUS HOLDING CO., LTD.          Notes to the financial statements for the year ended 31 December 2013recorded in the profit or loss, the reserved impairment loss on available-for-trade debtinstrument is recorded in the current profit or loss.The equity instrument where there is no quoted price in an active market, and whose fairvalue cannot be reliably measured, or impairment loss on a derivative asset that is linkedto and must be settled by delivery of such an unquoted equity instrument shall not bereversed.(4)Recognition and measurement of financial assets transferThe Group derecognizes a financial asset when one of the following conditions is met:
    1) the rights to receive cash flows from the asset have expired;
    2) the enterprise has transferred its rights to receive cash flows from the asset to athird party under a ―pass-through‖ arrangement; or
    3) the enterprise has transferred its rights to receive cash flows from the asset andeither (a) has transferred substantially all the risks and rewards of the asset, or (b) hasneither transferred nor retained substantially all the risks and rewards of the asset, buthas transferred control of the asset.If the enterprise has neither retained all the risks and rewards from the financial assetnor control over the asset, the asset is recognized according to the extent it exists asfinancial asset, and correspondent liability is recognized. The extent of existence refersthe level of risk by the financial asset changes the enterprise is facing.For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, (a).the carrying amount of the financial asset transferred; and (b) the sum of theconsideration received from the transfer and any cumulative gain or loss that had beenrecognized in other comprehensive income, is recognized in profit or loss.If a part of the transferred financial asset qualifies for derecognition, the carrying amountof the transferred financial asset is allocated between the part that continues to berecognized and the part that is derecognized, based on the relative fair value of thoseparts. The difference between (a) the carrying amount allocated to the part derecognized;and (b) the sum of the consideration received for the part derecognized and anycumulative gain or loss allocated to the part derecognized which has been previouslyrecognized in other comprehensive income, is recognized in profit or loss.(5)Classification and measurement of financial liabilitiesThe Group‘s financial liabilities are, on initial recognition, classified into financial liabilitiesat fair value through profit or loss and other financial liabilities. For financial liabilities atfair value through profit or loss, relevant transaction costs are immediately recognized in
    SHENZHEN TELLUS HOLDING CO., LTD.         Notes to the financial statements for the year ended 31 December 2013profit or loss for the current period, and transaction costs relating to other financialliabilities are included in the initial recognition amounts.①Financial liabilities measured by the fair value and the changes recorded in profit orlossThe classification by which financial liabilities held-for-trade and financial liabilitiesdesigned at the initial recognition to be measured by the fair value follows the samecriteria as the classification by which financial assets held-for-trade and financial assetsdesigned at the initial recognition to be measured by the fair value and their changes arerecorded in the current profit or loss.For the financial liabilities measured by the fair value and changes recorded in the profitor loss, fair values are adopted for subsequent measurement. All the gains or losses onthe change of fair value and the expenses on dividends or interests related to thesefinancial liabilities are recognized in profit or loss for the current period.②Other financial liabilitiesDerivative financial liabilities that linked with equity instruments, which do not have aquoted price in an active market and their fair value cannot be measured reliably, issubsequently measured by cost Other financial liabilities are subsequently measured atamortized cost using the effective interest method. Gains or losses arising fromderecognition or amortization are recognized in profit or loss for the current period.(6)DerecognitionThe Group derecognizes a financial liability (or part of it) when the underlying presentobligation (or part of it) is discharged or cancelled or has expired. An agreementbetween the Group (an existing borrower) and existing lender to replace originalfinancial liability with a new financial liability with substantially different terms isaccounted for as an extinguishment of the original financial liability and the recognition ofa new liability.When the Group derecognizes a financial liability or a part of it, it recognizes thedifference between the carrying amount of the financial liability (or part of the financialliability) derecognized the consideration paid (including any non-cash assets transferredor new financial liabilities assumed) in profit or loss.(7) Offsetting financial assets and financial liabilitiesWhen the group has a legal right that is currently enforceable to set off the recognizedfinancial assets and financial liabilities, and intends either to settle on a net basis, or torealize the financial asset and settle the financial liability simultaneously, a financial
    SHENZHEN TELLUS HOLDING CO., LTD.       Notes to the financial statements for the year ended 31 December 2013asset and a financial liability shall be offset and the net amount is presented in thebalance sheet. Except for the above circumstances, financial assets and financialliabilities shall be presented separately in the balance sheet and shall not be offset.(8) Equity instrumentsAn equity instrument is any contract that evidences a residual interest in the assets ofthe Group after deducting all of its liabilities. The consideration received from issuingequity instruments, net of transaction costs, are added to owners‘ equity.All types of distribution (excluding stock dividends) made by the Group to holders ofequity instruments are deducted from owners‘ equity. The Group does not recognize anychanges in the fair value of equity instruments.8、Account receivablesThe account receivable by the Group includes account receivables, and otherreceivables.(1)Criteria for recognition of bad debts:The Company carries out an inspection on the balance sheet date. Where there is anyobjective evidence proving that the receivables have been impaired, an impairmentprovision shall be made:①A serious financial difficulty occurs to the issuer or debtor;②The debtor breaches any of the contractual stipulations, for example, fails to pay ordelays the payment of interests or the principal, etc.;③The debtor will probably become bankrupt or carry out other financial reorganizations;④ Other objective evidences showing the impairment of the receivables.(2)Method for bad debts provision① Provisions of bad debts in account receivables that is individually significant.
    The Group treats account receivables over RMB 1,000,000 and other receivablesover RMB 500,000 as individually significant items.For an account receivable that is individually significant, the asset is individuallyassessed for impairment, and the amount of impairment is recognized in profit or loss ifthere is objective evidence of impairment is included in a group of financial assets withsimilar credit risk characteristics and collectively assessed for impairment. An accountreceivable for which an impairment loss is individually recognized is not included in agroup of account receivables with similar credit risk characteristics and collectivelyassessed for impairment.② Provisions of bad debts in account receivables that individually insignificant items
    SHENZHEN TELLUS HOLDING CO., LTD.              Notes to the financial statements for the year ended 31 December 2013with similar credit risk characteristics that have significant risk:A.Evidence of credit risk characteristics
        Whether the financial asset is individually significant or not individually significant, itis included in a group of financial assets with similar credit risk characteristics andcollectively assessed for impairment. Such credit risk reflects the repayment of all dueamount under the contract, and is related to the estimation of future cash flow expectedto be derived from the assets.Evidence of portfolios:
                           Item                                           Evidence of portfolios
    Aging portfolios                                   Use the aging of account receivables as credit risk characteristicsB.Provision by credit risk characteristics按 During the group impairment test, the amount of bad debts provisions is determinedby the assessed result from the experience of historical loss and current economicstatus and the existing loss in the estimated account receivables according to the set ofaccount receivables and credit risk characteristic.Provisions for difference portfolios:
                                  Item                                            Method of provision
                             Aging portfolios                                    Provision by Aginga. Provision by Aging analysis
                        Aging                   Accounts receivable(%)                       Other receivables(%)
    Within 1 year(inclusive)                              No provision                                    No provision
    1-2 years (inclusive)                                         5                                            5
    2-3 years (inclusive)                                         20                                           20
    Over 3 years                                                  50                                           50③ Provisions of bad debts that is individually insignificant.The Group treats account receivables under RMB 1,000,000 and other receivablesunder RMB 500,000 as individually insignificant items.For the account receivables not individually significant, the Group assesses the accountreceivables individually for impairment when are of following characteristics: if there isobjective evidence indicating the impairment, the impairment loss is recognized at the
    SHENZHEN TELLUS HOLDING CO., LTD.                 Notes to the financial statements for the year ended 31 December 2013difference between the present value of future cash flow less the carrying amount, andprovision is made accordingly. For example, account receivables with related parties;account receivables under litigations or arbitrations, or account receivables with obviousindication that debtor cannot fulfill the obligation of repayment.(3)The reversal of bad debts provisionIf there is objective evidence of recovery in value of account receivables, and therecovery can be related to an event occurring after the impairment was recognized,the previously recognized impairment loss is reversed and recognized in profit or loss.However, the reversal shall not result in a carrying amount that exceeds what theamortized cost would have been had the impairment loss not been recognized at thedate the impairment is reversed.9、Inventories(1)Classification of inventory
    The Group‘s inventory mainly include raw materials, goods in stock, work-in-progress
    and low value consumables, etc.(2)Valuation method of inventories upon delivery
    Inventories are initially carried at the actual cost and delivered at the value by weighted average method. The low
    value consumables and packaging should be amortized in equal installment.(3)Basis for determining net realizable value of inventories and provision methods fordecline in value of inventoriesNet realizable value is the estimated selling price in the ordinary course of business lessthe estimated costs of completion, the estimated costs necessary to make the sale andrelevant taxes. Net realizable value is determined on the basis of clear evidenceobtained, and takes into consideration the purpose of holding inventories and effect ofpost balance sheet events.At the balance sheet date, inventories are measured at the lower of the cost and netrealizable value. If the net realizable value is below the cost of inventories, a provisionfor decline in value of inventories is made. The provision for inventories decline in valueis normally determined by the difference of the cost of individual item less its realizablevalue.After the provision for decline in value of inventories is made, if the circumstances thatpreviously caused inventories to be written down below cost no longer exist so that thenet realizable value of inventories is higher than their cost, the original provision fordecline in value is reversed and the reversal is included in profit or loss for the period.
    SHENZHEN TELLUS HOLDING CO., LTD.      Notes to the financial statements for the year ended 31 December 2013
    (4)Inventory system is maintained for stock system.10、Long-term equity investments(1)Determination of Investment costFor a business combination involving enterprises under common control, the initialinvestment cost of the long-term equity investment shall be carrying value of theabsorbing party‘s share of the owners‘ equity of the party being absorbed at the date ofcombination. For a business combination not involving enterprise under common control,the combination cost including the sum of fair value, at the acquisition date, of the assetsgiven, liabilities incurred or assumed, and equity securities issued by the acquirer. Theintermediary expenses incurred by the acquirer in respect of auditing, legal services,valuation and consultancy services etc and other associated administrative expensesattributable to the business combination are recognized in profit or loss when they areincurred. Transaction fee of equity securities or debt securities issued by purchaser‘sbusiness combination, which should be calculated in initializing confirming amount ofequity securities or debt securities.The equity investments other than the long-term equity through combination shall beinitially measured by cost. The cost shall be recognized to the difference in the way ofacquisition of long-term equity investment. Theses ways include the cash purchase pricethe Group actually paid, the fair value of equity security issued by the Group, valuespecified in the investment contract or agreement, the fair value or carrying value of theasset out in the transaction of non-monetary asset exchanges, and the fair value of thelong-term equity investment. Other direct cost, tax and necessary expenses related tothe acquisition of long-term equity investment are recognised in investment cost.(2)Subsequent MeasurementCost method shall be adopted in a long-term equity investment where the investingenterprise does not have common control or significant influence over the investee, theinvestment is not quoted in an active market and its fair value cannot be measuredreliably. Where an investing enterprise can exercise common control or significantinfluence over the investee, a long-term investment shall be accounted for using theequity method. When an investing enterprise can no longer exercise joint control orcommon control nor significant influence over the investee, and its fair value cannot bemeasured reliably, a long-term investment shall be counted as financial asset ready-fortrade.A long-term equity investment where cost method is adopted in the Company‘s financial
    SHENZHEN TELLUS HOLDING CO., LTD.        Notes to the financial statements for the year ended 31 December 2013statements can exercise controls over the investee.① Cost method of accounting for long-term equity investmentsUnder the cost method, a long-term equity investment is measured at initial investmentcost. Except for cash dividends or profits declared but not yet paid that are included inthe price or consideration actually paid upon acquisition of the long-term equityinvestment, investment income is recognized in the period in accordance with theattributable share of cash dividends or profit distributions declared by the investee.② Equity method of accounting for long-term equity investmentsWhere the initial investment cost of a long-term equity investment exceeds the investingenterprise‘s interest in the fair values of the investee‘s identifiable net assets at the timeof acquisition, no adjustment shall be made to the initial investment cost. Where theinitial investment cost of a long-term equity investment is less than the investingenterprise‘s interest in the fair values of investee‘s identifiable net assets at the time ofacquisition, the difference shall be charged to profit or loss for the current period, and thecost of the long-term equity investment shall adjusted accordingly.Under the equity method, the Group recognizes its share of the net profit or loss of theinvestee for the period as investment income or loss for the period. The Grouprecognizes it share of the investee‘s net profit or loss based on the fair value of theinvestee‘s individual separately indentible assets, etc at the acquisition date after makingappropriate adjustments to confirm with the Group‘s accounting policies and accountingperiod. Unrealized profits or losses resulting from the Group‘s transactions with itsassociates and joint ventures are recognized as investment income or loss to the extentthat those attributable to the Group‘s equity interest are eliminated. However, unrealizedlosses resulting from the Group‘s transactions with its investees on the transferredassets, in accordance with "Accounting Standards for Enterprises No. 8 - Impairment ofAssets", are not eliminated. Changes in owners‘ equity of the investee other than netprofit or loss are correspondingly adjusted to the carrying amount of the long-term equityinvestment, and recognized as other compressive income which is included in thecapital reserve.When the investee is recognized net losses, reduce the carrying value of long-termequity investments and long-term equity of net investment (in substance) in investee tozero. In addition, the Group has the obligations on additional losses, then the expectedobligation as estimated liabilities and included in the current investment losses. Wherethe net profit from investee units, restoration confirm the amount of revenue sharing afteroffset the amount of unrecognized loss sharing.
    SHENZHEN TELLUS HOLDING CO., LTD.        Notes to the financial statements for the year ended 31 December 2013For long-term equity investments in associates and joint ventures which had been heldby the Group before its first time adoption of Accounting Standards for BusinessEnterprises in 01-01-2007, where the initial investment cost of a long-term equityinvestment exceeds the Group‘s interest in the investee‘s net assets at the time ofacquisition, the excess is amortized and is recognized in profit or loss on a straight linebasis over the original remaining life.③ Acquisition of minority interestThe difference between newly increased equity investment due to acquisition of minorityinterests and portion of net asset cumulatively calculated from the acquisition date isadjusted as capital reserve. If the capital reserve is not sufficient to absorb the difference,the excess are adjusted against returned earnings.④ Disposal of long-term equity investmentWhere the parent company disposes long-term investment in a subsidiary without achange in control, the difference in the net asset between the amount of disposedlong-term investment and the amount of the consideration paid or received is adjusted tothe owner‘s equity. If the disposal of long-term investment in a subsidiary involves loss ofcontrol over the subsidiary, the related accounting policies in Note 4.2.(2) applies.On disposal of a long-term equity investment, the difference between the proceedsactually received and receivable and the carrying amount is recognized in profit or lossfor the period. For along-term equity investment accounted for using the equity method,the amount included in the owners‘ equity attributable to the percentage interestdisposed is transferred to profit or loss for the period. For any retained interest, it shall besubsequently measured according to the related accounting policies in regard oflong-term equity investments or financial assets as described above if its carryingamount is recognized as long-term equity investments or other related financial assets.Retroactive adjustment is made on the basis of relevant policies if the retained interestsare settled from cost method to equity method.(3) Recognition of investee under common control or significant influenceControl is the power to govern the financial and operating policies of an enterprise so asto obtain benefits from its operating activities. Common control is the contractuallyagreed sharing of control over an economic activity, and exists only when the strategicfinancial and operating decisions relating to the activity require the unanimous consentof the parties sharing control. Significant influence is the power to participate in thefinancial and operating policy decisions of the investee but is not control or joint control
    SHENZHEN TELLUS HOLDING CO., LTD.       Notes to the financial statements for the year ended 31 December 2013over those policies. When determining whether an investing enterprise is able toexercise control or significant influence over an investee, the effect of potential votingrights of the investee held be the investing enterprise or other parties that are currentlyexercisable or convertible shall be considered.(4)Impairment testing methods and recognition of impairment provisionThe company assesses the long-term equity investment at the balance sheet datewhether there is any indication of impairment. If any indication exists that an asset maybe impaired, the enterprise shall estimate its recoverable value of the asset. If therecoverable value of the asset is less than its carrying amount, a provision forimpairment loss of the asset is recognized accordingly.Once an impairment loss is recognized, it shall not be reversed in a subsequent period.11、Investment propertiesInvestment property is property held to earn rental or for capital appreciation or both. Itincludes a land use right that is leased out, a land use right held for transfer upon capitalappreciation, and a building that is leased out.The investment properties shall be initially measured in light of their cost when getting itand make a follow-up measurement to the investment real estate through the costpattern on the date of the balance sheet. The test method of depreciation or impairmentof the buildings is the same as fixed assets, the test method of depreciation orimpairment of the land use rights is the same as intangible assets.The details of assess method and impairment provision for investment properties are inNote4.17 ―Impairment of non-current non-financial assets‖.Where an investment property is disposed or no longer in use permanently and noeconomic benefits shall be obtained from the disposal, derecognized the investmentproperty. The income from sale, transfer or disposal of the investment property isrecorded in the profit or loss after deduction of its carrying amount and related tax.12、Fixed assets(1)The conditions of recognitionFixed assets refers to the tangible assets that are held for the sake of producingcommodities, rendering labor service, renting or business management and their usefullife is in excess of one fiscal year.(2)The method for depreciationFixed assets are stated at cost and consider the impact of expected costs of abandoningthe initial measurement. From the following month of state of intended use, the
    SHENZHEN TELLUS HOLDING CO., LTD.            Notes to the financial statements for the year ended 31 December 2013straight-line method is used for different categories of fixed assets to take depreciation.The recognition of the classification, useful life and estimated residual rate are asfollows:
                                                                Estimated residual value
                   Category           Expected useful life                                 Depreciation(%)
                                                                        (%)
    Building & construction                       35                           3                      2.77
    Machines & equipments                         12                           3                      8.08
    Vehicles                                       7                           3                     13.86
    Electronic appliances                          7                           3                     13.86
    Office and other equipment                     7                           3                     13.86
    Private housing renovation costs              10                           0                     10.00Expected net residual value of fixed assets is the balance of the Group currentlyobtained from the disposal of the asset less the estimated costs of disposal amount,assuming the asset is out of useful life and state the expected service life in the end.(3) Measurement and recognition of fixed assetsImpairment and provisions of fixed assets are disclosed on Note 4.17 ―Impairment ofnon-current non-financial assets‖.(4)OthersA fixed asset is recognized only when the economic benefits associated with the assetwill probably flow to the Company and the cost of the asset can be measured reliably.Subsequent expenditure incurred for a fixed asset that meet the recognition criteria shallbe included in the cost of the fixed asset, and the carrying amount of the component ofthe fixed asset that is replaced shall be derecognized. Otherwise, such expenditure shallbe recognized in profit or loss in the period in which they are incurred.The revenue from selling or transferring, or disposing a fixed asset is booked into profitand loss after deduction of carrying value and related tax.The Group conducts a review of useful life, expected net realizable value anddepreciation methods of the fixed asset at least on an annual base. Any change isregarded as change in accounting estimates.13、Construction in progressConstruction in progress is measured at its actual cost. The actual costs include variousconstruction expenditures during the construction period and other relevant costs.
    SHENZHEN TELLUS HOLDING CO., LTD.       Notes to the financial statements for the year ended 31 December 2013Construction in progress is transferred to a fixed asset when it is ready for intended use.Testing method for provision impairment of construction in progress and accrued methodfor provision impairment please refer to Note 4.17 Impairment of non-current financialassets‘.14、Borrowing costsThe borrowing costs shall include interests on borrowings, amortization of discounts orpremiums on borrowings, ancillary expenses, and exchange balance on foreigncurrency borrowings. Where the borrowing costs incurred to an enterprise can bedirectly attributable to the acquisition and construction or production of assets eligible forcapitalization, it shall be capitalized and recorded into the costs of relevant assets. Otherborrowing costs shall be recognized as expenses on the basis of the actual amountincurred, and shall be recorded into the current profits and losses.Where funds are borrowed for a specific-purpose, the amount of interest to becapitalized is the actual interest expense incurred on that borrowing for the period lessany bank interest earned from depositing the borrowed funds before being used on theasset or any investment income on the temporary investment of those funds. Wherefunds are borrowed for a general-purpose, the amount of interest to be capitalized onsuch borrowings is determined by applying a weighted average interest rate to theweighted average of the excess amounts of accumulated expenditure on the asset overand above the amounts of specific-purpose borrowings. During the capitalization period,exchange differences related to a specific-purpose borrowing denominating in foreigncurrency are all capitalized. Exchange differences in connection with general-purposeborrowings are recognized in profit or loss in the period in which they are incurred.Assets qualified for capitalization are the fixed assets, investment properties orinventories which need a long time of construction or production activities before readyfor intended used or sale. Capitalization of borrowing costs is suspended during periodsin which the acquisition, construction or production of a qualifying asset is interrupted byactivities other than those necessary to prepare the asset for its intended use or sale,when the interruption is for a continuous period of more than 3 months. Borrowing costsincurred during these periods recognized as an expense for the current period until theacquisition, construction or production is resumed.15、Intangible assets(1)Recognition and calculation of intangible assetThe term ―intangible asset‖ refers to the identifiable non-monetary assets without
    SHENZHEN TELLUS HOLDING CO., LTD.         Notes to the financial statements for the year